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.
All hopes from banking system has vanished
Ufb is the back door entry of wadhwans .
Talking is taking us no where. We collectively have to think this out before it is even late ….better even now than Never!
It is most unfortunate that RBI have made amalgamation plan without any changes even after receiving suggestions and objections
The same with cosmetic changes have been approved by central Govt.
This amalgamation plan is not amalgamation but merger forced on inocent depositors and stakeholders, as there was no trasferancy & participation .
From financial angle liquedity of Rs 3075 cr of PMC bank will be used by UNITY to pay depositors above Rs 5.0L iover ten years
Even though on surface it is claimed that full amount of Rs 4000 cr is paid over period of 10 years with no intetest for 5 years 10 months & nominal intetest of 2.75 % for next 5 years, actual value of this payment works out tobe from Rs 2500 to 2650 only depending on interest rate .
Apart from above said liquedity UNITY will get secured loan of 1455 cr+ HDIL original base loan Rs 2500 cr+ Assets of Rs 800 cr.
Agaist this their liability is provision of Rs 1150 cr for DICGC Loan.and another Rs 1300 cr provision for institutional depositors.
From above it is clear that PMC amalgamation is nothing but offering pmc bank in charity and penalising inocent depositors for 10 years
21 co op banks have gone bankrupt, thanks to RCS, RBI, Auditer and management. Why non of them are punished.
Actually depositer hv no say in electing the bank management. These banks were guaranteed by RBI & go Bankrupt, what is the guarantee new identity bank don’t go Bankrupt.
God / judicial can only save depositer.
Instead of amalgamation scheme, our honourable Prime Minister could have issued permission to all the innocent depositors to “DAYA MARAN” slip.
Why did RBI ask for suggestions/comments from the depositors with regard to the draft scheme, when it had no intention of hearing them out? Depositors had vociferously objected to the scheme which is blatantly against the interests of depositors (mostly sr citizens) who may not live to see their money back after 10 years. Ten years is too a long time to wait for these hapless depositors. RBI & the Govt have played a wild joke on these unfortunate victims, at the same time handing over the bank on a silver platter to indecent uncouth people like Mr. Grover,
There are too many things which are not right in the amalgamation scheme, but not PM, FM, RBI or any one seems interested in making the correction.
1. RBI was informed by a whistle blower in 2010-11 when UPA govt was running the affairs.
2. Even after 2011 no one took the audit of the bank seriously. The concerned people in RBI were blind to the SCAM and the others were looking the other way. 8f it was known at least new citizens would not have deposited their hard earned, taxed money in the bank.
3. Since 2019, when restrictions on withdrawal were imposed our FM and RBI, gave the hapless depositors an impression that they will return the money asap. They failed.
4. With the amalgamation scheme, new customers of USFB are being offered 7% in savings account, but not the old depositors and other stake holders. Why? Is it not a SCAM. I request the govt. to take cognizance before banks become a joke and corruption grows again.
5. If the USFB provides at least 6% interest to all with a condition that the depositors will not withdraw funds for at least 2 years until the bank stabilizes, could be understood. The present scheme is a SCAM designed by some one higher in authority and in the govt too.
Goa elections are round the corner and it seems no party will get a majority. If some one can get 2-3 winning candidates from other parties to join the BJP, after the results, with a condition put forward by those MLAs, that depositors of PMC bank be laid upfront in full, the Central Govt will immediately find ways and means to do it within a week. (PmC had 4.branches in Goa….if someone can work on this, it’s a sure shot way to get your hard earned money back)
Really very very sad , total injustice towards us. We all have been running pillar to post to get our own hard earned savings and now they treat us like this . Where do we go 😰
DICGC going to pay our own money in the new Unity bank account,not our old PMC bank withdrawal system.We.need to download new Unity bank App.
Why this system RBI has approved.
I think to get us as Unity bank customers?
Helping them to establish properly?
No sympathy for us depositors, to get our savings directly?
Very very unfortunate situation.