Media reports say the Parliament was informed that the PMC Bank had shown an exposure of only Rs 439.6 crore to the HDIL Group out of Rs 6,226 crore, so the loan was covered up.
RBI has said the PMC bank did not give information about its exposure to HDIL. Meanwhile, RBI has classified the hidden loan as NPAs.
It is worth mentioning that banking functions of cooperative banks are regulated by the RBI under the Banking Regulation Act, 1949 and the apex bank conducts statutory inspection of Urban Cooperative Banks (UCBs) under section 35 of the BR Act, 1949.