No chance of the PMC Bank crisis percolating through scheduled commercial banks: FinMin
Amid the Punjab and Maharashtra Co-operative (PMC) Bank crisis which forced the Reserve Bank of India (RBI) to impose restrictions on the lender, the finance ministry said there was no chance of the crisis spreading to programmed commercial banks. (SCB).
“Scheduled commercial banks have no exposure in PMC Bank. There is no link between PMC bank fraud and SCBs. There is no chance of PMC Bank crisis percolating into SCBs,” a ministry official said.
The official said the RBI monitors the timing of bank capital and funds information in real time. Their credit information is monitored by the RBI on the CRILIC system’s central large credit information repository), the official said.
Speaking of the stock index decline after PMC’s bank fraud became public, the official said it was just a wave of panic.
The ministry official’s clarification comes three days after Finance Minister Nirmala Sitharaman clarified that multi-state cooperative institutions do not fall under the finance ministry. She released the clarification by urging a Twitter user on Monday not to “mention / speak / write such extreme things” after said user tweeted that “people are forced to consume poison” as a result of the limit. withdrawal imposed by the RBI. on PMC Bank depositors.
“I ask you not to mention / speak / write about such extreme things. Multi-state cooperative institutions are not under the Ministry of Finance, even though they are called banks. The RBI is their regulator and they are taking action. “she said. noted.
The RBI also assured the public that “India’s banking system is safe and stable and there is no need to panic.”
âThere are rumors in some places about certain banks, including cooperative banks, causing anxiety among depositors. RBI would like to assure the general public that the Indian banking system is safe and stable and that there is no need to panic based on such rumors, âthe RBI said on Monday.
On September 23, the RBI imposed restrictions on PMC Bank account holders after allegations of financial irregularities. The limit was revised to Rs 10,000 three days later and further relaxed to Rs 25,000 on Thursday.