5 Moves RBI Needs To Make on PMC Bank Right Now
The failure of Punjab and Maharashtra Cooperative Bank (PMC Bank)—a relatively small multi-state cooperative bank—is a test for the reformist Narendra Modi government. Remember, Modi sarkar has waged a war on cash and wants us to keep our money in banks. The public fell in line, because it had no choice. The government cannot, now, try to distance itself from direct responsibility for a bank failure, as the finance minister (FM) has tried to do.
 
The Reserve Bank of India (RBI) has appointed a retired chief general manager (CGM) as the administrator of PMC Bank and a team of faceless retired bankers to help him. It has also commissioned a forensic audit by Grant Thornton which will take anywhere between four to six weeks, at the earliest, to submit a report. This is too slow, given that the stress and anxiety has already led to several depositors losing their lives.
 
What PMC Bank needs is a Satyam-like quick resolution by a team that is savvy and fully empowered to ruthlessly push for a solution that is in the best interest of a majority of stakeholders. For this, speed is of the essence. RBI does not seem to understand that it does not have time on its hand and delays are going to worsen the situation. 
 
Crisis resolution cannot be handled by a retired central banker; most of them operate out of an ivory tower, with very little understanding or empathy for issues faced by people—especially businesses and non-salaried professionals. I say this without any disrespect to specific individuals; but it needs to be stressed that it requires a different skill-set and higher level of influence. 
 
Delay in resolving the crisis will erode depositors’ money as the Bank pays salaries to its employees at the 137 branches that continue to function. One also assumes that the fees paid to the administrators and forensic auditors will come out of deposits with the Bank. 
 
Loans to the Wadhwan group of HDIL, which caused the collapse, are variously estimated at between Rs2,500 crore and Rs6,500 crore. What is the status of nearly Rs2,000 crore that the Bank has lent to others? Are these loans secured? Has PMC Bank issued letters of credit (LCs) or given guarantees? If so, are these being honoured?
 
Nearly a month after the crisis, there is no clarity on the financial status of the Bank, while depositors’ money gets depleted every day that it remains in suspended animation. A forced takeover of the Bank— as some people are demanding—will be nothing short of a scandal, especially when there are 1,500 cooperative banks out there, apart from some giant finance companies, that are tottering dangerously. 
 
Fortunately, RBI governor Shaktikanta Das is a lot more open and receptive than his predecessors. On 15th October, on behalf of Moneylife Foundation, we highlighted some of these issues to governor Das. Many of them need to be addressed with the same speed that was shown in making changes during demonetisation. Here are five moves that RBI should make urgently.
 
1. Statutory Dues: PMC Bank has business accounts of tens of thousands of small businesses where it was their sole banker. Its failure has set off a chain of alarming issues in relation to payment of statutory dues. Remember, defaults—even if they are not the customers’ fault—have been criminalised by this government. 
 
Payments by PMC Bank were abruptly stopped on 23rd September. This means businesses would have failed to make payments of advance tax, GST (goods and services tax) and tax deducted at source (TDS) that may have already been deducted from employees or creditors. There may be provident fund dues to be paid. 
 
Failure to make these statutory payments is a jail-able offence. Under the new rules, this may affect the ability of unconnected businesses to get GST credit, if any supplier in the chain is a PMC Bank creditor and has failed to deposit GST. The finance ministry needs to step in and ring-fence PMC Bank victims from needless harassment and prosecution for being unable to make payments due to the Bank’s failure.
 
2. Individual Payments: What is the status of salaried employees or professionals who had standing instructions with the Bank for payment of credit card dues or EMIs (equated monthly instalments)? 
 
In a week or two, depositors who are unable to make payments, despite having funds, will be marked defaulters for no fault of theirs. The system has no provision to provide any leeway for this. 
 
RBI needs to ensure that innocent depositors are given time to get back on their feet and the Bank’s failure is not allowed to affect their credit scores until then. This requires a systemic solution that should apply in all such cases. 
 
3. HDIL Dues: A press release by the Enforcement Directorate (ED) states that it has seized assets and properties valued at Rs3,830 crore and another 80 properties around Mumbai that have yet to be valued. This caused elation among depositors. 
 
But it is unclear how many banks and lenders will stake a claim to these assets and whether the same asset has been pledged to multiple lenders. More importantly, ED’s seizures could land up in court under the PMLA (Prevention of Money Laundering Act), unless a different approach is adopted that allows for quick resolution and repayment to PMC Bank.
 
4. Finding a Buyer: When the PMC Bank debacle first erupted, its reputation as a well-run bank with 137 branches across states attracted attention. A large cooperative bank even toyed with the idea of making an acquisition offer, but got cold feet once it learnt of the enormity of the fraud. 
 
Even today, PMC Bank would find buyers if there is a quick estimation of losses and amount recoverable. A leading banker, who prefers to remain unnamed, told me, “The key would be to find a potential buyer who would be considered ‘fit and proper’ by RBI to run a bank and has deep pockets to acquire one.”
 
Such a buyer may be willing to pay anywhere between Rs1,500 crore to break into the banking business with a network of 137 branches and trained staff on board. But if the losses are higher, there will be no takers. 
 
A less attractive option would be to sell the branch network, maybe to banks looking to expand into key geographies where PMC Bank operates. Again, this needs quick action, smart decisions, well-structured bids and willingness of RBI to play ball. 
 
5. Changing the Rules: Finally, one hopes that the PMC Bank debacle is a harsh lesson to the government and a realisation that the cooperative bank structure has long outlived its utility; most of them are badly exploited by politicians. 
 
The government must use the crisis to convert these into scheduled commercial banks with stringent oversight and supervision by a single regulator. The structure of deposit insurance has to be reworked. Collection of insurance premium from all banks cannot work when the risks involved are vastly different. In the past 25 years, all payments/settlements by the Deposit Insurance and Credit Guarantee Corporation have been for failed cooperative banks. Isn’t it ironical that these banks attract depositors by offering higher interest on deposits? 
 
Clearly, they need to pay a risk-based insurance, as recommended by the Jagdish Capoor committee (but ignored for decades), instead of being clubbed with nationalised banks and large private banks. The same is true for payment banks and small finance banks. Of course, this will not work when there is outright fraud, as in the case of PMC Bank. 
 
So, a quick resolution template with appropriate empowerment of RBI is a necessity at a time when the government is moving towards more privatisation. Each of the above-mentioned moves requires speed; but this understanding seems to be missing, so far. 
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    COMMENTS

    Ramesh B Mhadlekar

    1 month ago

    The retired Regional director Mr. J.B. Bhoria now an administrator of PMC Bank was claiming bogus overtime for his driver continuously for five months including Saturday Sunday when RBI was closed and Public holidays and also while absent from headquarters on tour. Can his report be relied upon? The said submission is based on RTI received from RBI. Also a newspaper cutting received on whatsapp reveals that the members of Nasik Merchant Bank have demanded an inquiry of Mr. Bhoria for the 5 years of his tenure while he being appointed by RBI. His son was also illegally involved in possession of an RBI official Vehicle which met with an accident and was a police case with Malabar Hill as per RTI. His integrity is probably doubtful.

    Ramesh B Mhadlekar

    1 month ago

    The retired Regional director Mr. J.B. Bhoria was claiming bogus overtime for his driver continuously for five months including Saturday Sunday when RBI was closed and Public holidays and also while absent from headquarters on tour. Can his report be relied upon? The said submission is based on RTI received from RBI. Also a newspaper cutting received on whatsapp reveals that the members of Nasik Merchant Bank have demanded an inquiry of Mr. Bhoria for the 5 years of his tenure while he being appointed by RBI. His son was also illegally involved in possession of an RBI official Vehicle which met with an accident and was a police case with Malabar Hill as per RTI. His integrity is probably doubtful.

    manojkamrarti

    1 month ago

    In my opinion, long term solution will be to close all cooperative banks having dual supervision of RBI and state RCS and no clear ruling pertaining to cooperative banks phasewise by liquidation (or by making policy of gradual winding up).

    As cooperative banks are formed only for big scam with collusion with RBI officials. This is evident from gradual decrease in numbers of cooperative banks from 1986 UCBs in 2004 to 1551 in 2018. That is in last 15 years, 365 UCBs have been closed (mostly due to scam with active support of corrupt RBI officials).

    So it is better to close all cooperative banks having no necessity in todays' scenario to avoid future PMC scam and harassment to common depositors.

    Suketu Shah

    1 month ago

    Speciality of Modi govt is whatever they say is final.RBI,Supreme Court,anyone else all are irrelevant.Their best minister also calls Einstein as Newton and still thrashes trolls!

    Public is only required for votes -nothing else.

    Harish

    1 month ago

    Good Analysis and Excellent Solutions.

    manojkamrarti

    1 month ago

    RBI officials corrupt role in nourishing such scams BY LEGALLY HELPING SCAMSTERS invariably similar pattern in all urban cooperative banks/credit cooperative societies in the name of big unsecured loans to the relatives of top management as following--

    (1) At present , 82 urban cooperative banks illegally running (merely on the basis of their application for license under consideration--a RBI coined fictitious term) . Moreover, there is no maximum time limit of getting license of such running banks on the basis of merely "application for license under consideration".

    (2) Out of 17 annual returns, no punishment on non-submission of annual return even in more than two decades by RBI.

    (3) Every year audit mandatory but no audit of any bank in more than two decades till scam appear

    (4) RBI issues public notice banning such urban cooperative bank/credit cooperative society that maximum withdrawl limit from this bank will be -----Rs only till finalization of entire accounts .

    (5) Then the accused bank officials file writ petition against RBI ban to lift the ban by false claims of having sufficient reserves.

    (6) RBI officials remain silent in the writ petition at high courts by suppressing the truth of UNLICENSED, UNINSURED BANK for more than two decades not eligible to get any relief till payment to all customers (in very corrupt manner) . Morevoer, RBI corrupt officials even uphold the false claim of big recovery by defaulter bank without getting examined .

    (7) During writ petition by defaulter cooperative bank (in which state RCS is not party), RBI official hurry up impatiently to give NO Objection to remove word "bank" and permit to work as credit society under state RCS WITHOUT MAKING HIM PARTY without ensuring payment to the customers . Such legal blunder of leaving liability to RCS without making him party greatly helps further scam.

    (8) Finally, RBI corrupt officials keep copy of decision of writ petition favouring defaulter bank to start banking activity FOR ONE MONTH without serving copy to state RCS under whose supervision it has to work as credit cooperative society.

    Aforesaid steps make amply clear the very active corrupt role of Dy GM rank officials of RBI in flourishing the scams and no limit of time in decades for unlicensed banks to work as "application for license under consideration".

    P M Ravindran

    1 month ago

    A very informative and meaningful report. But is anybody listening. Speed, of course, is the essence in resolving any and all disputes. But then our justice delivery system is the most failed system in our country, isn't it? And who is responsible for that? Our judges simply blame a fictitious judge to population ratio to justify preposterous delays and accuse the investigators and prosecutors when even their decisions look questionable. We recently had the chief justice of a high court resign when posted to a smaller high court as the chief justice. It was naturally read by the public as a punishment and she made her resignation look like a protest. And then the cat was out- she had been attending court only in the afternoons and she also allegedly had some dealing with some politicians! Anyhow, this is not the first case of a bank failing and I suppose enough studies would have been carried out on earlier failures. And those reports could be gathering dust with some bureaucrat in is office. The equally important question is how many of the guilty have got punished so far?

    Interestingly at Marad in Kerala where the apex court dusted up a review petition of 2015 vintage and ordered 5 flat complexes to be demolished within one month, nothing moved till the Chief Secretary was hauled up and made to appear in person before the court. And then things happened so fast that the flats have been vacated, a former judge headed committed is vetting compensation to be paid and one developer and two low level public servants have been arrested. Well, only one developer and two public servants...

    Umadevi

    1 month ago

    5th point..changing the rules is the most important..but that is required everywhere which is a volumnous job.For stricter rules there is severe opposition. Congress party institutionalized corruption on all walks and it is very difficult to uproot it.
    Actually I felt very bad when Moneylife was campaining against making Aadhaar compulsory....and KYC was one of the basic manipulated in PMC bank to make fake accounts. Common biometric ID which can be tracked is a basic requirement.

    REPLY

    P M Ravindran

    In Reply to Umadevi 1 month ago

    There is no doubt that Adhaar as a system is conceptually good but the issue is with implementation. Similar systems had been reportedly tried and given up in US, UK and Australia on issues of economy and privacy. And India is a country where ration system has been in existence since independence and we still haven't been able to issue ration cards correctly. Even the other day a report in the local daily gave statics of APL people, including government employees, using BPL and other priority cards. And no punishment to any offender. In fact sometime back the Chairperson of the Kerala State Women's Commission was found using two ration cards (with one of them being priority card) at two different places with different sets of family members. She continues to head the Commission.

    Coming to Adhaar, KYC etc I have been getting false alerts through e mail about validating transactions carried out by one Ravi Kumar Ojha. Though the e mail is addressed to me the person addressed is Ravi Kumar Ojha and it gives the last 4 digits of the UID which are not mine. I have complained a couple of times initially and not received any reply. There are three questions: one, how did my e mail id get linked to Ravi Kumar Ojha's KYC? Two, why am I not getting alerts on my mobile, which number is available even on the Adhaar card issued to me, and which can be more promptly attended to? The third question is : will Ravi Kumar Ojha be getting the alerts he should be getting?

    shadi katyal

    1 month ago

    Since Modi govt came in power lot has been done to damage the economy and
    RBI has been abused and accused of its independence thus creating a confusion.
    The number of scams on banks during this regime is much more than what we claimed on UPA
    Where is any new laws or amendments and protection of depositors by this govt or is Modi only happy to buy opposition MP's to create absolute power?

    REPLY

    P M Ravindran

    In Reply to shadi katyal 1 month ago

    This is one of the most stupid comments that I can even imagine. The foundations of this country in its current form had been laid by a fraud Pandit. While he thought he was fit enough to be the first PM of this country without any experience in governing even a local body, he wanted experienced hands as the Governor General and the Commander in Chief of the armed forces. So he appointed the Viceroy, to kick out whom the nation had paid a heavy price for almost a hundred years, as the 1st Governor General of 'free' India and another Briton as the 1st C-in-C. Even when this C-in-C put in his papers, because of Nehru's stupidity in addressing the Kashmir situation correctly, he wanted to appoint a Briton as the next C in C also. This was thwarted by the then Lt Gen Nathu Singh Rathore who bluntly asked him the most pertinent question: what experience did you have to head the government of the newly independent country? Of course that helped make Gen Cariappa the 1st Indian C in C. But that was not the end of Nehru's stupid and treacherous acts. And one cannot expect Narendra Modi to undo all the harm done to this country over 70 years of the scamgressie rule in such a short time. When the foundations are rotten the structure has to be reconstructed from the scratch. And NaMo is trying to do the impossible as of now but he is the first PM who is working whole heartedly for the nation, body, mind and soul.

    Anoop P

    In Reply to P M Ravindran 1 month ago

    Demonetization is arguably the worst blunder any leader can make. This has thrown India\'s economy to atleast a decade behind.

    manojkamrarti

    1 month ago

    The main reason behind failure of urban cooperative banks , credit cooperative banks is extreme corruption of RBI officials in keeping silent over their deficiency of standards laid down by RBI.

    So liable RBI officials need to be booked and their ill acquired properties need to be attached alongwith reduction of their pensions.

    TIHARwale

    1 month ago

    well written article touching various issues that will crop in coming days for PMC account holders leading to action from other arms of Government

    P S Krishnan

    1 month ago

    RBI in its current form has outlived it's utility. They lack the competence and expertiseto regulate commercial banks. Need to look at an alternative approach to regulate commercial banks

    REPLY

    P M Ravindran

    In Reply to P S Krishnan 1 month ago

    Absolutely true. Not just RBI but almost the whole system of governance. Please read my articles DEMOCRACY?…EAST IS EAST AND WEST IS WEST! and REFORMING OUR JUSTICE DELIVERY SYSTEM at http://suchnaexpress.blogspot.com/2011/01/democracyeast-is-east-and-west-is-west.html

    DrRajesh Bheda

    1 month ago

    Fact of dual control is hyped unnecessarily. Except for elections & the board for all other aspects of banking, RBI rules. Even for CEO appointment if RBI puts its foot down the board will comply. It can dictate very much if it wants too & unless there is very strong politician involved it even does not succumb to political pressure. Of course it does succumb.

    On PMO intervention, RBI Seeks Response From Kotak Mahindra Bank To Santosh Bagla’s Complaint
    Mumbai based businessman Dr. Santosh Bagla has sent out a press release on how the Reserve Bank of India (RBI) has asked Kotak Mahindra Bank to examine and redress the grievance within a time-bound manner. Mr Bagla had earlier complained to the Prime Minister’s Office (PMO) about vindictive action by the bank which was passed on with routine instructions to examine the matter. An article in this regard had gone viral on social media. At that time Kotak Bank’s communication department had issued a statement about ‘certain persons’ having ‘distorted’ a simple communication and made ‘damaging statements’. 
     
    The case pertains a ten  year old matter where the Bagla family which acted as guarantors  to Cogent Ventures India Ltd. The bank claims that it started routine recovery proceedings. However, according to Dr Santosh Bagla, the process obviously went bad. Dr Santosh Bagla claims a a ‘criminal conspiracy’ to falsely impliate his son Bhupendra, leading to his arrest, even when he had secured anticipatory bail. Mr Bagla claims that a Rs 50 lakh loan to Cogent Ventures (India) Limited was  an “unsecured loan” and this was “admitted and confirmed by the advocates of Kotak Mahindra”, which led to Buphendra Bagla securing bail.  
     
     
    The Bagla family has since been fighting for justice and has written to the President’s Office, and the Union Home Ministry demanding a CBI probe against the bank and its senior management as well as the police offiicals involved in the arrest. They have also filed a complaint against the six Delhi police officials for “malafide arrest”. 
     
    Mr Bhupendra Bagla says he suffered enormous social humiliation, huge business losses and even a breakdown of his marriage due to the actions unleashed by the bank.  “It took my family eight long years to come out clean, but we lost prestige, business respectability and faced social humiliation, besides suffering huge monetary losses in fighting the case. I will now file a defamation suit against Kotak”. 
     
     
    Interestingly, Mr Rohit Rao, Chief Communication Officer of Kotak Bank claims that “the borrower entered into an out-of-court settlement and repaid the bank’s dues” and that the “bank always acts in accordance with the prevailing law and regulations. We shall be dealing with the matter appropriately". 
     
    It remains to be seen what the bank says in response to RBI and whether Mr Bagla goes ahead with the litigation he has threatened; it is also a fact that banks are often over zealous in the means that they adopt for recovery, especially when borrowers are not big businesses. 
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    COMMENTS

    Kavi Tulasi

    2 weeks ago

    Last year Dec my dad joined as agent they gave some limited period of time to make people to join under him so dad joined us under him he do not know computer knowledge just they(dads senior member) took Xerox copy of gov IDs and signature from pan card they themselves created 5 policies totally 5 lakhs took. My question is... Whether it is safe or scam please anyone help me under this bef Dec 2019

    Mataprasad Dubey

    1 month ago

    This necessary to examine elegation and follow public observation which always have truth. After that take action to prevent people to suffer due to the fraud.

    Asokkumar Rathnam

    1 month ago

    The article does not appear to give all facts. Kotak's side of the story is not known. When a facility from a bank is not secured, it simply means there is no tangible security. If the facility has been guaranteed by third party, the Bank has got every right to proceed against the guarantor. Persons guaranteeing Rs. 50 lakhs can, by no stretch of imagination, be considered as small guys. Are we going to adopt the principle that small and medium-sized borrowers/ guarantors should not be approached for recovery since big borrowers have disappeared with liabilities of thousands of crores?

    ROSHAN AGARWAL

    1 month ago

    I am also fighting same case with kotak bank since 2015. The kotak bank has feaduently mortgaged our HUF property for third party loan to a stranger on the basis of bogus forged and fabricated documents without checking its legal validity. The CEO , directors and senior officrr are directly responsible for money laundring of public money snd hsrrasment to a innocent senior citizens. The RBI and CEO of kotak of directly responsible for increasing loan frauds innpublic system as they donot act when matter reported to them.

    Praveen Sakhuja

    1 month ago

    Interesting story to read. HAS any media pubished any such story where any medium class or lower bissiness has faced such action, and voice has been raised in his favor? Certainly not, then why for this family? I leave put to the readers to decide, whetehr it is fair or motivated action under any selfish motives. Bolo Jai Shree RAM

    REPLY

    Sucheta Dalal

    In Reply to Praveen Sakhuja 1 month ago

    Interesting point. We see the hand of digital teams here. But let me explain why this is a story -- it is because the small guy does not have resources to fight such a battle. You also seem to be a new visitor to moneylife -- we are full of stories about little Davids fighting Goliaths -- google our website you will fund plenty. Two heart warming ones are Mangelal Sharma and Injamuri a retired ticket checker. Suchitra Krishnamurthy's case is similar.

    Mr Jitendra

    In Reply to Sucheta Dalal 1 month ago

    I doubt if any other common man would be able to take on the fight with the mighty banks even in 2019. The system is not much supportive to lower middle class and middle class victims of frauds.

    Newme

    1 month ago

    Maybe it\'s just me but I couldn\'t understand the issue. Report is mix up of he said they said interlaced with some editorial statements.

    REPLY

    mahendra kumar

    In Reply to Newme 1 month ago

    The point raised here is how far a bank can go and whether the bank is empowered by rule of law I.e to proceed against the guarantor if at all there is one and secondly can right of set off be applied where there’s a lien i.e on the basis of a simple undertaking?
    If the answer is no then government represented by its authorities will definitely catch hold of bankers in question. There should not be any doubt at all. RBI is the regulator. It will look into it as well.

    mahendra kumar

    1 month ago

    It’s true.

    PMC Bank: Moneylife Foundation Helping Distressed Customers to File Writ Petition in Bombay HC
    Responding to the plight of distressed customers of scam-hit Punjab & Maharashtra Co-operative (PMC) Bank, Moneylife Foundation has decided to help them in filing writ petition in the Bombay High Court. 
     
    This is a very limited window of opportunity. We need to verify all the details and file the petition within the next 72 hours. It is in your interest to participate in this legal action because sometimes court orders benefit only those who file the petition and not all those who are affected.
     
    Steps to Join the Writ Petition
     
    We are moving to the next step: actual legal action. Here is how a depositor and customer of PMC Bank can join the writ petition.
     
    1. We need data to make the petition strong. For this share your basic information with us. If you have only a PMC Bank account please download the form from here. If you have an account in other banks as well please download the form from here.
     
    2. Send the completed form to [email protected] with "Writ Petition in PMC Bank Matter" in the subject line.
     
    3. For filing the writ, you would need to sign an affidavit and vakalatnama.
     
    4. Visit Moneylife Foundation office at 304, 3rd Floor, Moneylife Foundation, Hind Services Premises Industries Limited, Near Chaityabhoomi, Opposite Hindu crematorium, Off Veer Savarkar Road, Shivaji Park, Dadar-28
     
    5. Meet Aravind Natarajan, who is coordinator for this.
     
    6. Contact on 022-49205000 / 7045156415 (WhatsApp for sending message only).
     
    The reason we need detailed information about each case is because as part of the legal strategy, we wish to group the affected people under different heads. Also, you will be making affirmations in court, which has to be 100% accurate and we cannot have surprises later on and spoil our case. We will keep all information totally confidential and we will not share it with anyone else.
     
    Our legal action follows a public meeting of PMC Bank depositors organised by Moneylife Foundation along with All India Bank Employees Association (AIBEA) and Centre for Financial Accountability (CFA) on 12 October 2019 at Mumbai. (Read: “If PMC bank depositors need a solution they have to get engaged in large numbers in a legal process”)
     
    Moneylife Foundation was approached by several depositors of PMC Bank, highlighting not only their own woes but several systemic issues that are likely to destroy their financial credit and get them into serious legal difficulties, maybe even leading to imprisonment. 
     
    Prior to the public meeting, Moneylife Foundation had sent a detailed memorandum to RBI on issues faced by depositors, the current position under the law and the reliefs sought. (Read: Memorandum to RBI Suggests Quick Sale of PMC Bank & Implementing Gandhi Committee Report to Prevent Frequent Collapse of Cooperative Banks
     
    Moneylife Foundation also conducted a survey of PMC Bank depositors to collate specific details of hardship faced by them through an online survey tool. If you haven’t, fill up the Survey here https://www.surveymonkey.com/r/PMCBank 
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    COMMENTS

    M Ramachandiran

    4 weeks ago

    Loan

    Vijayan Kurup

    4 weeks ago

    I wd like to know is there any chance to avoid delaying justice??? history shows very tragic story of depositors.

    M Ramachandiran

    1 month ago

    I am contacting my resume ladies PG chocolate factory road Tavarekere Bangalore 560029

    REPLY

    M Ramachandiran

    In Reply to M Ramachandiran 4 weeks ago

    Loan

    Mr Jitendra

    1 month ago

    What happened to Madhavpura Mercantile? Did all the large size depositors recover their capital with interest who lost it in 2001? Does media and moneylife have any clue on whether the money of large size depositors was returned with interest of 17+ years?

    P M Ravindran

    1 month ago

    I know that this is the right step under the circumstances. But the scope is limited and results are for short term, except for the delays inflicted by the courts. The long term need is to make the appointments in the judiciary merit based and transparent and the judges accountable. We also should ban advocates from courts. The judges are expected to know the law and the parties to the case, the facts. Thus between the threesome any dispute can be legally resolved, amicably. Advocates only muddy the waters where they can fish for themselves only. I remember attending the concluding function of a seminar on Access to Justice organised by the supreme court advocates on record association. The then Union Law Minister, Ravi Shankar Prasad, had illustrated a fact with an example of how at the beginning of a case the petitioner used to go the court in a car and the advocate on a bicycle and by the time the case was disposed of the petitioner was on a bicycle and the advocate in a car. Very diligently he avoided mentioning the outcome of the case itself.

    CHANCHALKUMAR DAGADE

    1 month ago

    money life Team First of all Thank you so much for your support to bank depositors.. Lets do our best.. We are with you. Do keep posting. I am submitting form on the behalf of my mother for the The City Co-Op Bank Ltd Mumbai. Thank you

    Anjali Upadhyay

    1 month ago

    Its Good Idea for literate people. I totally support this but please come back with some other solutions for not so educated peoples too. becz there are many having current account in PMC Bank and they are working in small group of business and they have just lost every thing, they have some lakhs of money in this bank but now could not operate their business at all at this time.

    Dinesh Bhaskar

    1 month ago

    Brilliant! Finally, one media house with a sense of genuinely wanting to help people in distress.

    Proud of the entire team @ MoneyLife!

    CHANDRASHEKHAR VINAYAK KAKATKAR

    1 month ago

    Thank You ML team - on behalf of the PMC depositors in distress.
    I have forwarded your msg to many of my relatives & friends thru Whatsapp group.
    Also offered them my services to fill up the form.
    Hope to get a good response.

    P S Krishnan

    1 month ago

    Well done ML. This is step that the Government - Either center or state and RBI should have initiated. You are doing a far effective work than Governments and RBI, all these frauds and inefficient Government and RBI employees should be sacked enmasse. Keep up the good work. PMC is an eye opener for me. I was planning to invest my retirement PF in a Bank FD, now I willl split it as 1 lakh in several banks and put a major part in Sundaram Finance FD which is Gold standard and more credible than Indian Sovereign Bonds. ML should initiate a campaign for hiking of deposit insurance on par with the investment, only the interest component should be at risk not the principal, the Entire principal should be compensated by the Government. Why should honest depositors suffer for RBI and Governments corruption and inept processes

    Ajihtkumar Pillai

    1 month ago

    Great to note that Moneylife js joining the poor PMC Bank Customers , who have been cheated, by offering legal support All the best for the same

    GLN Prasad

    1 month ago

    This is the exact way of helping isolated, distressed depositors. ML deserves high appreciation for this commitment.

    nadeem

    1 month ago

    Kudos to team Moneylife...! Always in the forefront fighting for the common man..!

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