In a hard-hitting letter, the body known as PMCB Shareholders and Account holders Forum has rejected the draft scheme for PMC amalgamation and called it a piece of rubbish.
It bears recall the Reserve Bank of India had placed in the public domain a draft scheme of amalgamation of The Punjab and Maharashtra Cooperative (PMC) Bank with Unity Small Finance Bank Ltd. (USFB). The draft scheme of amalgamation envisages the takeover of the assets and liabilities of PMC Bank. RBI invited objections from members, depositors, and other creditors of transferor bank (PMC) and transferee bank (USFB), on the draft scheme till 5.00 PM on December 10, 2021. It said the apex Bank will take a final view thereafter.
Listing its objections in a letter written to the RBI Governor, the Forum requested allowing the participation of PMC Bank Depositors & shareholders representative panel while drawing the final amalgamation scheme.
The letter says “the draft scheme was a sheer disappointment to the stakeholders in totality & liable for outright rejection. Hence it needs to be improvised thoroughly with dynamism to the best of satisfaction of the stakeholders, in order to welcome it with open arms”, reads the letter.
The Forum has demanded the inclusion of a selected representative panel of at least seven members of the stakeholders in the PMC Bank consisting of Advocates, Chartered Accountants, ex-bankers, & Entrepreneurs to participate in the final drafting of the amalgamation scheme on immediate priority.
“This panel will not only be helpful to the RBI, to provide valuable inputs, but also shall ensure that the voice of depositors & shareholders be heard & well taken care of in the final scheme of amalgamation before it is implemented” argues the letter.
The Forum says “This will also save RBI of any resistance, litigations & legal hassles. The list of the names of the participating panel can be forwarded officially through the PMC bank administrator after receiving RBI’s intimation of approval via the PMC Bank on our above proposal.”
The PMC depositors also argue that their demand is not unreasonable as the Central government accommodated farmers and held many rounds of consultations with their representatives. Hence, we once again request the RBI to make our selected panel of representatives as part of the final amalgamation scheme process on high priority.
Earlier, Sahakar Bharati also raised objections to several of the provisions of draft amalgamation. Sahakar Bharati felt that the entire loss suffered by the PMC Bank was being thrust on the shoulders of the Depositors. In real terms, USFB is not taking any responsibility for the PMC Bank Depositors.
Sahakar Bharati argued that in larger Public interest DICGC should step in and grant sufficient financial support to USFB. In this regard, to protect the interests of DICGC, it should nominate at least 2 Directors on the Board of USFB. Reserve Bank of India and the Government of India should suitably amend the Draft Scheme of Amalgamation to safeguard the interests of the PMC Depositors.
It bears recall that Maharashtra UCBs led by Vidyadhar Anaskar had also submitted their list of suggestions to the RBI earlier.
RBI is using pmcbank money for whom?
We shd get our money back
RBI & PMC BANK
1- RBI & Central ROC have failed to regulate and supervise bank even after information on fraud.
2- Adhoc payment of Rs 1.0 L to all depositors have resulted in diverting Rs 1250 cr from depositors above Rs5.0 L and reduction in PMCB & DICGC liability. In other word ,this has resulted in saving of DICGC money of Rs 1250 cr but loss to depositors above Rs 5.0 L depositors.
3- Running PMCB in zombie condition for last 27 months have resulted in minimum loss of additional Rs 1250 cr.
4-Above two act of RBI is also reson for precious loss of lives of 200 + depositors, which is nothing but genocide.
5- Even after above said loss RBI want to penalise depositors and shareholders by diverting liquidity of Rs 3000 cr for business development of UNITY SFB.
6- RBI and administrator have miserably failed in recovery from HDIL for last 27 months.
As this money is not available at present ,RBI has not taken this fund in caculating amalgamation scheme but locked PMCB liquedity in favour of UNITY SFB.
7- To hide above said fact from public domen RBI & administrator has purposely not explained the rationale of amalgamation but only invited objection and suggestions from stake holders as per section 45 of banking regulation act.
We do not know how serious is RBI & administrator to protect interest of stakeholders.
8- There is no participation of stakeholders or trasfarancy in draft amalgamation scheme .
9-We were told by Mr A.K Dixit on 31 Dec 2021 that RBI have send amalgamation scheme with objections and suggestions to finance ministry. Whether they have revised the scheme or done postmaster job is not known to stake holders.
We are waitng for justice from FM, HM & PM.
DICGC & PMCB
There is wrong information in circulation about PMCB depositors.
We are giving following information to correct wrong perception.
1 -72300 retail depositors below Rs 1.00 L were paid full by PMCB .No contributions of DICGC. In terms of percentage it was 84%
2- Balnace 142000 depositors will be paid by DICGC. Ie 16% only.
3- The balance deposit amount of retail depositors above 1.0 L is Rs 7800 cr and DICGC will only give Rs 3450 cr ie 44% balance amount Rs 4350 ie 56% is deprived this benefit inspite of paying insurance on full amount.
DICGC & PMCB
1- Adhoc payment of Rs1.0 to all depositors has reduced liability of DICGC from Rs 5050 cr to Rs 3800 cr ie reduction of Rs 1250 cr.
2 – DICGC loan is of Rs 3800 cr.
As this is loan we have to provide provision of Rs 1150 cr @ 6.0% to return loan after 20 years.
3 -Net fund available from DICGC Rs 3800 – Rs 1150 cr=Rs 2650 cr.
4- Depositors up to Rs 5.0 L will be paid Rs 1960 cr
Balance available amount is only Rs 690 cr.
5- As bank due to zombie condtion has incurred loss of 1250 cr for last 27 months and this is to be borned by depositors above Rs5.0 L
Net availble amount from RBI take over is Rs 690- 1250 cr=Rs 560 cr loss.
6 – Even though on surface depositors above Rs 5.00 L will get also get Rs 5.00 L The above said loss may result in hair cut for depositors above Rs5.00 L
7- RBI and administrator has misrabley failed to recover money from HDIL and this amount is not considered in amalgamation scheme and this is another reason for further haircut.
8- RBI further want to penalise PMCB Stakeholders by trasfering Rs 3000 cr for businesses developement of UNITY SFB at the cost of starving depositors with haircut for next 10 years.
As final amalgamation scheme is with finance ministry ,we have to wait for justice..
The PMCB bank problem is not big issue as it is projected.
The amount required for payments to retail depositors is as follow.
1- Up to Rs 5.00 L Rs 3500 cr approx.This will be given by DICGC.
2 – Additional Rs 5.0 L Rs1300 cr . Can be easily given from liquedity of Rs 3000cr available with bank.
3- Addtional Rs 5.00 L Rs900 cr from liquedity.
4-Addtional Rs 10.0L Rs600 cr from liquedity and recovery
5-Addtional Rs 10.0L Rs450 cr from and recovery.
6- Balance all amount Rs 1100 cr from recovery.
If RBI would not have run PMCB in zombie condtion inccuring loss of Rs 1300 cr & DICGC loan of Rs 4500 cr(March 2020) availed ,PMCB would not have not lost live of 250+ depositors and bank could have operational.
Even if RBI & GOVT decide to run bank as on date bank can start by JAN 2022 but are they willing???
This is my personal views
It is surprising that we have 1500+ co-operative banks, co-operative ministry but we have no plan to stop exploitation of depositors in co-operative banking.
It is shame that RBI & Govt celebrated DEPOSITORS FIST national programme but PMCB depositors are fighting for survival for last 27 months.
PMCB is case of day light robbery in bank where senior citizens ,widows are 40%.
RBI have given draft amalgamation plan which is extending suffering of such depositors for next 10 years.
As on date we do not see commitments of RBI & Govt to end survival struggle of inocent depositors of PMCB
While preparing amalgamation for PMCB,RBI has played role as tyrant dictator.
RBI has conveniently forgotten that the loss of Rs 1250 cr to 1500 cr due to zombie condition of bank for last 27 months is main hurdle for healthy revival of bank.
It appers that any suggestions of sahakar Bharati and others who work co-operative movements is of no value & significance in front RBI.
Even through Govt have created co-operative ministry, its role in safeguarding depositor’s money in bank is missing.
Govt show of “Depositors fist” may not create confidence in co-operative banking unless we are serious about frauds in co-operative banking & concerns for hardship experienced by depositors when banks fail.
Making amendments in B R act is proved as eye wash as poor supervision by RBI continues.
It is unfortunate that this Govt along with its various agencies has chosen to tread the path of deception and outright lies. They have set a dangerous example for industry and businesses to follow. The discrimination/rank injustice displayed by an arrogant RBI towards the innocent, defrauded, helpless PMC Bank Depositors will go down in history as a watershed moment when the leaders of our country knowingly and wilfully connived with opportunist entities to cheat its vulnerable people, many of them senior citizens.
RBI should return all the money if PMC bank depositors with interest as there was no foul of depositors it’s a complete mis management of RBI that they can’t find out scam in the books. One of the staff of PMC bank complained RBI about the scam in 2011 but instead of taking action against PMC bank the RBI sent a letter to PMC bank administration team about that complaint.. all the depositors and media have proof about that letter. RBI should have to take the responsibility of mis management in their system and put money in new small finance bank and allow depositors to withdraw their whole money without any cut in interest and without delaying.
Thank you.
RBI should return all the money of PMC bank depositors with interest .There was not a single mistake of PMC bank depositors, it’s a complete mis management of RBI that they can’t find out scam in the books. RBI always granted PMC bank with A grade in audit reports. One of the staff of PMC bank complained RBI about the scam in 2011 but instead of taking action against PMC bank the RBI sent a letter to PMC bank administration team about that complaint.. all the depositors and media have proof about that letter. RBI should have to take the responsibility of mis management in their system and put money in new small finance bank and allow depositors to withdraw their whole money without any cut in interest and without delaying. Thank you.
PMCB AMALGAMATION PLAN BY RBI IS CRUEL JOKE
Most literate & bankers bank RBI have failed to revive PMC bank for last 27 months.
The PMC Bank has incurred loss of minimum Rs1250 to 1500 cr.
As depositors could only withdraw Rs 1.0 L for their survival for last 27 months & more than 250 depositors died.
DICGC will give loan of Rs 3800 cr. and up to Rs 5.00 will be paid to all eligible depositors.
PMCB also have liquedity of Rs 3000 cr ,assets of 800 cr agaist balance payable to Deposit amount of Rs 4350 cr. approx to retail depositors.
However as per amalgamation scheme of RBI , Depositors will get only Rs 1640 cr Aprox in next 5 years and balance amount after 10 years.
Balance liquedity & assets will be given in charity to UNITY SFB as per amalgamation scheme.
The depositors will get zero% interest for fist 6 years and 2.75 % for next 5 years.
This plan of RBI is nothing but cruel joke on depositors.
This is case when priminister of country celebrated DEPOSITORS FIST event.& supreme court has given judgment that Depositor’s money must be paid as it is not only on trust but contract between depositors and bank.
What will be the condition of senior citizens who are nearing 80years plus please look after the interest of senior citizens
Why shouldn’t we keep our money in cooperative Banks which offer higher interest, since RBI & government will eventually succumb to the pressure of elections, & provide instant insurance cover for the deposits in the failed cooperative Banks?
Sir, my 10 laks money in pmc bank…I want it back as soon as possible…process should be simple no hidden agenda so that process doesn’t derail some wasted people taking interest to derail the process. Thanks
Only in name” in the interests of stakeholders” Entire scheme
Only in name” in the interests of stakeholders” . In reality entire scheme of amalgamation was drafted to suit interests of promoters Grover and Binds. For just a capital of Rs 1100 cr. They get everything. Atleast 1500 cr from HDIl wadhwan if honest efforts are made,CRR and other statutory reserves with RBI Rs 2800 cr, good debtors 27%Rs 1500cr, bal in dormant accounts, 137branches in prime locations out of which 27are owned, trained staff with reduced salary at 70%.But absolutely no obligation to repay depositors of PMCB!!! Mera Bharat Mahan!!!
So many other banks have gone bust.
Why is PMC Bank being treated differently?
U, the govt. Expects sr. Citizens to wait for 5/10 years to get back their investment for which they have paid tax at every turn?
The draft amalgamation scheme prepared by RBI and UNITY SFB without trasfarancy and Participation of PMCB stake holders indicates dictator approach of RBI and UNITY SFB. They
have failed to create confidence in PMCB depositors. The management of UNITY SFB have lost creditability before starting the bank.
Banking is business of trust but Mr Bindra and Mr Grover have failed to create the same.They want to hide behind RBI as if they are inocent.
If co-operative ministry & organisation such as Sahakar Bharti intervention failed, it will be last straw in co-operative banking.
If RBI & UNITY continues their adamant approach without keeping interest of PMCB Stakeholders it will be considered as failed amalgamation scheme.
The draft amalgamation scheme prepared by RBI and UNITY SFB without trasfarancy and Participation of PMCB stake holders indicates dictator approach of RBI and UNITY.
UNITY SFB has failed to create confidence in PMCB depositors. The management of UNITY SFB have lost creditability before starting the bank.
Banking is business of trust but centrum & bharat pay have failed to create the same.They want to hide behind RBI as if they are inocent.
If co-operative ministry & Sahakar Bharti intervention failed, it will be last straw in co-operative banking.
If RBI & UNITY continues their adamant approach without keeping interest of PMCB Stakeholders it will not be amalgamation scheme but second daylight robbery of RBI & UNITY SFB.
I reject the RBI proposal regarding Punjab and Maharashtra coop. Bank. Namaste!
PMC bank depositors should not suffer for the fault committed by others. The depositors are innocent and they have put on their entire life’s hard-earned money into this bank and without any notification they have imposed these restrictions and taken the depositors for granted. Punish those criminals and not the innocent people. How inhuman is this.
1. Small depositors below 5 lakhs amount and super senior citizens say above 65 years of age should be bailed out immediately. Other senior citizens above 57 of age should be given relief of atleast Rs. 20 lakhs immediately.
2. Interest should be applicable on all outstanding deposits till payment is done.
3. Onus of making balance amount payable, should be on RBI. There should be written undertaking given by RBI.
Co op banks are covered under state laws.
In this case Maharashtra government. In spite of serious problems State political leaders insist on total control by them.
RBI only is a regulater and does not manage day to day operations. Of any banks.
Depositer must look at credibility of management of banKs rather than look for quarter or half percent higher rate of interest.
Afterall if a Bank gives higher interest it also takes high risk of its depositers funds.
It is no great secret and its been known since long that Govt/RBI has lost their mental equilibrium. They are unable to think rationally or even distinguish between right and wrong and are now ruling through sheer arrogant despotism.
Every floundering clueless action of Govt agencies/RBI since 2011 has defied logic, ever since the 1st whistleblower blew the lid off, exposing nefarious activities in PMC Bank. Multiple cover-ups, muddled thinking, opaque dealings, half-baked schemes favouring and shielding the perpetrators while mindlessly punishing the innocent depositors for over 27 months, cruelly ignoring the deaths of 160 + senior citizen Depositors due to paucity of funds needed for medical intervention, while allowing the criminal fraudsters to enjoy hillstation holidays, free stay in hospitals – all of this give rise to speculation that it was a deliberate attempt by RBI to destroy our own countrymen.
Finally when RBI had the opportunity to redeem itself and rectify the incalculable damage done to PMC Bank through its poor monitoring, governance, they are instead hell-bent on pushing a skewed amalgamation scheme which totally benefits Centrum/BharatPe, while also ensure the surviving Depositors are completely annihilated.
RBI PROTECTOR OR DESTROYER OF PUBLIC MONY IN PMC BANK.
1-When PMC bank was facing fraudulent activities, RBI had not taken any action. Loss of bank incresed to Rs 5400 cr.( Balance sheet 2019)
2-When PMCB was lock down by RBI insted of safe gurding stakeholder’s money it wasted depositor’s money by keeping it zombie condition and incresed loss to Rs 7250 cr ( Balance sheet 2021)
3- During this period insted of giving insurance money from DICGC,RBI diverted Rs 1255 cr from account of depositors above Rs5.00 L and paid to depositors bellow Rs 5.00 L.
This money will not be available as loan amount from DICGC. Hence available fund for distribution to retail depositors decreased.
3- When it has given draft amalgamationscheme, it is made in such manner that depositors will be further compell to live without their life long savings for 10 years and they will be paid additional only Rs 10.0 L (Actual 7.2 L Only) for 10 years.
In reality PMC have liquedity of Rs 3000 cr and assets of 800 cr ,apart from Rs 1455 cr &1500 cr Recovery from secured loan & wadhwan assets to pay DICGC Loan and institutional depositors.
However RBI will like to give this money in charity (without interest) for development of UNITY BANK.
WHO SAYS RBI WORKS IN INTERST OF DEPOSITORS ??
Pls return my rightful money RBI.. Inhuman.
That is why our politician will not keep money in banks. they keep cores of rupee in there house itself. we salaried people pay tax keep money in bank and die forever