It is almost two months now, that the scam-hit Punjab and Maharashtra Cooperative (PMC) Bank’s normal functfioning has been suspended by the banking regulator - Reserve Bank of India (RBI). The issue of ₹6,500 crore fraud-hit bank’s case almost faded out of public memory but it resurfaced once again when the Economic Offences Wing (EOW) of Mumbai Police made its ninth arrest in the case. This time it was one more director Rajneet Singh, son of Mumbai-based BJP leader, Sardar Tara Singh, on Saturday November 16.
The investigation may take its own course but the fate of lakhs of depositors and their hard-earned money parked with the bank in the form of Fixed Deposits (FDs) exceeding ₹11,500 crore, is not yet known. The stress created by this scam has taken at least 10 lives and if the probe takes longer time, this toll may rise. We analysed the state of the sector across the country - why every few months, banks fall prey to some irregularity and depositors are left in the lurch.
“It’s not only the PMC Bank’s fate but all the other banks, who were earlier put under administrator by the regulator,” says Vishwas Utagi, Co-convener, Trade Unions Joint Action Committee and Convener, PMC Bank Depositors’ Association. “Kapol Cooperative Bank suffered the same fate on March 31, 2017 with withdrawal limit set at ₹3,000 per depositor. The day-to-day operations of the bank will remain under “administrator” till January 2020. Rupee Cooperative Bank came under administrator on February 22, 2013.
The depositors don’t have access to their money but the staff gets salary. Though, the RBI has allowed the bank to release some money for exceptional cases,” he says.
Bu hikaye Outlook Money dergisinin December 2019 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Outlook Money dergisinin December 2019 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Stay Ahead Of AI-Powered Cyber Fraud
AI has become an integral part of our lives, right from customer service at banks to insurance claims. But it has now become a powerful arsenal for the fraudsters too who are increasingly using AI to scam individuals and corporations alike to commit fraud. The key is to stay vigilant
Travelling To Europe? Pack In The Essential Covers
Smart travellers must know that insurance is a must-have. From essential health coverage to theft protection and trip interruptions, know what you need for a worry-free Europe trip
How To Spend Wisely This Year-End
We all spend during the year-end. But the trick is not to overspend or borrow, either from friends, or your own investment, to fund your indulgence. Maintaining balance is the key
Travel Now Pay Later (TNPL)
Travel now, pay later (TNPL) is a close cousin of the more popular buy now, pay later (BNPL) schemes.
12 Books Devina Mehra Loved Reading In 2024
Listing books of her choice, among the ones she reads during the year, is ace investor Devina Mehra's favourite year-end activity. She says it's a daunting task to pick around 12 books from a list of 50.
Here's How To Avail Of Ayushman Bharat Yojana
Launched in 2018, the Ayushman Bharat Yojana aimed to provide health coverage to targeted benefi ciaries from the Socio-Economic Caste Census (SECC) 2011, based on deprivation and occupational criteria.
'Focus On The Business, Assess If You Want To Be A Partner For 10-20 Years'
Professor Sanjay Bakshi, a value investor, behavioural economist and adjunct professor at Flame University, Pune, gives his unique perspective on how to choose a stock, in an interview with Nidhi Sinha, editor, Outlook Money, as part of the Wealth Wizards series. He also shares his learnings from role models Warren Buffett, Charlie Munger, Benjamin Graham and others, and how being a chartered accountant, economist, investor and teacher make him into what he is today. Edited excerpts from the interview
The New Trump Card For IT, Pharma
Donald Trump has been re-elected as the 47th President of the US after a gap of four years. Here's how it will affect the Indian markets and how it will benefit sectors such as IT, pharma, export-oriented sectors and others
European Sojourn
Tight on budget? Dump the popular European destinations for the little-known wonders that are equally attractive
Gold ETFs And FoFs
While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.
