The RBI notification allowing Unity Small Finance Bank Ltd to take over the function of PMC Bank with a questionable resolution for helpless depositors has shocked the entire urban cooperative bank fraternity. Among others, Sahakar Bharati says “It is saddened beyond words”.
The co-op body has written a strong letter in which it also wishes the Supreme Court to take suo moto cognizance of the matter. Later, talking to the Indian Cooperative, its leaders said they are seriously thinking of going to the apex court in the matter.
Excerpts of Sahakar Bharati press release issued on the issue:
“Sahakar Bharati is saddened and shares the anguish of PMC Bank Depositors who have been cheated and are now left high & dry.
The PMC Bank failure is not like a failure of other Banks. It is the result of the failure of Auditors and Inspecting Officers who failed to detect the fraud being perpetrated for a long time.
Depositors, including Institutional Depositors and Senior Citizens, had depended on Audited and published Annual Reports while placing their Deposits with the PMC Bank. Therefore, Depositors cannot be faulted for their judgment. Hence, equity demands that justice be meted out to all hapless Depositors who are victims of fraud.
The Terms of Amalgamation are totally one-sided and most unfair to the Depositors. An Out of Box solution is, therefore, Absolutely repeat, Absolutely necessary and we once again reiterate as follows:
- DICGC should step in to provide liquidity support. In this regard, GOI/RBI should issue necessary directions to DICGC.
- Maximum period of Lock In should be of 5 years for all Depositors.
- Minimum interest @ 6% should be paid to all Depositors during the Lock-In Period of 5 years.
In the public interest, GOI and RBI should review the approved Scheme of Amalgamation to mitigate the hardships faced by the Depositors who are victims of fraud.
Sahakar Bharati will take lead along with the PMC Depositors/Associations and will Appeal to the Supreme Court to take Suo Moto cognizance of the hardships PMC Depositors are facing on account of long Lock-In Period of a minimum of 10 years and ridiculously low Rates of Interest ranging from 1% to 2.75%.”
The letter is signed by the national general secretary Uday Joshi.