Pooh Poohing the Unity Small Finance Bank’s assurance that 96% of the PMC Bank depositors would be given their money, Deepika Sahani, Coordinator of Account Holders Association said that it is nothing more than hogwash and we have no option but to knock on the doors of the court.
“Unity Small Finance Bank or Centrum group is not giving a farthing from its pocket and it is the DICGC which is giving this money following the extant rule. Unity SFB is getting the Claim Form of DICGC filled by individual depositors”, said Deepika who has been fighting the case from the very beginning.
“Besides license and assets, the Centrum group has also pocketed the liquid of the PMC Bank and yet they are doing nothing for the depositors from their side, she stated underlining that the staggered payment and no interest on deposits are too little and too late. It is a sell-out, plain and simple”, she added.
Readers would recall that on Thursday the Unity Small Finance Bank issued a press release saying depositors can reclaim up to Rs 5 lac or may leave the amount in the bank which will offer 7% interest on the same.
Readers would recall that at the time of the DICGC Amendment, the PMC case was set aside and its depositors were not paid any money on the ground that the bank is under the process of amalgamation. Once the amalgamation is done, DICGC is giving money to depositors through the bank.
“The press release from the bank would make you believe that it is the Unity SFB which is giving money, though in reality, it is the DICGC’s fund”, said a victim.
The Centrum Group has hugely benefited from the deal as it got license, assets, and liquid but no liabilities, said representatives of the Depositors Forum. The PMC liabilities are being paid by the bank in an unfair manner over a large period of time. All the haircut is being taken by depositors with the Centrum Group laughing on the banks, added a victim.
Reacting to the issue, NAFCUB President Jyotindra Mehta said we wanted PMC Bank to be merged with a larger entity that would have taken all the liabilities and assets of the bank. The DICGC could have played an important role in having a huge pile of money with it.
Elaborating, Mehta said DICGC should have given a soft loan up to 50% and for a period of 4-5 years to the bigger bank to make it capable of taking the hit. Being one of the highest taxpayers in the country, it has a huge fund and it can easily do so, he underlined.
I hope the DICGC is not waiting for a day to act when the entire banking system will collapse, stated a pained Mehta.