Mumbai: A court here on Wednesday extended till 14 October the police custody of a former chairman of the Punjab and Maharashtra Cooperative (PMC) Bank and two directors of HDIL, arrested in connection with the alleged Rs 4,355 crore scam at the bank. She also said a committee will be formed to look into issues pertaining to multi-state cooperative banks. "But from my side, I've asked the secretaries of my ministry to work with Rural Development Ministry & Urban Development Ministry to study in detail as to what is happening", Sitharaman was quoted by ANI as saying. The Reserve Bank of India has imposed restrictions on withdrawal from the bank following a multi-crore scam involving the bank and HDIL promoters came to light.
Ms. Sitharaman, who was in Mumbai to campaign for the BJP-Shiv Sena alliance for the upcoming Maharashtra Assembly elections was greeted by agitated depositors of Punjab and Maharashtra Bank.
While addressing the media after the meeting, Sitharaman stated that the government has set up a group to prevent such incidents. "I won't be able to earn again whatever I've put in the bank".More news: Steam Is Adding Online Play to All Local Multiplayer Games
"Finance Ministry may have nothing to do with it (PMC bank matter) directly because RBI is the regulator".
"There are rumours in some locations about certain banks including cooperative banks, resulting in anxiety among the depositors".
Hinting at other measures like steps to improve exports, easing credit, making more money available by early repayments to vendors and front-loading of banks recapitalisation, Sitharaman said the government has been working on sector-specific measures. "We also appeal to the people of Mulund to participate in the shutdown", said a protester.More news: Edwin van der Sar Strong characters have 'disappeared' at Manchester United
"If amendments will help us curb malpractices and better regulate them, and also help us empower the regulator itself, we would like to do it", Sitharaman said.
The BJP-led government will bring in a legislation to this effect in the winter session of Parliament, she said.More news: Trump Says U.S. Holds ‘Most Dangerous’ Islamic State Terrorists in Syria