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.