STOCK MARKET BSE NSE

PMC Bank scam: Inspection report yet to be finalised says RBI

The RBI declined to give copies of two complaints received by it regarding 'irregularities' in the bank and the action taken on them, citing exemption clause in the transparency law.

Published: 29th December 2019 03:00 PM  |   Last Updated: 29th December 2019 03:00 PM   |  A+A-

Account holders line up in front of a branch of PMC Bank (Photo| Bloomberg)

Account holders line up in front of a branch of PMC Bank (Photo| Bloomberg)

By PTI

NEW DELHI: The inspection report on the financial position of the scam-hit Punjab and Maharashtra Co-operative (PMC) Bank as on March 31 this year is yet to be finalised, the Reserve Bank of India has said.

Replying to an RTI query, it said preliminary findings of the RBI indicated large-scale irregularities in the bank, warranting supersession of its board of directors and imposition of all-inclusive directions of the Banking Regulation Act, 1949.

"The inspection report is yet to be finalised as inspection of the bank with respect to its financial position as on March 31, 2019, is under progress," the central bank said in response to the RTI application.

ALSO READ | PMC Bank scam: 32000-page charge sheet filed against five accused

The RBI declined to give copies of two complaints received by it regarding "irregularities" in the bank and the action taken on them, citing exemption clause in the transparency law that bars disclosure of information that would impede the process of investigation or prosecution of offenders.

Based on the complaint vide letter dated September 17, wherein the complainant had alleged that the PMC Bank committed some irregularities, the RBI on September 19 commenced statutory inspection of the bank on its financial position as on March 31, it said.

"In view of the ongoing investigation into the bank's affairs by various authorities, an exemption is sought from disclosing the information under Section 8 (1) (g) and 8 (1) (h) of the Right to Information Act, 2005," the RBI said.

ALSO READ | PMC Bank crisis: Administrator to seek a valuation of HDIL's aircraft, yacht

The Section 8 (1) (g) bars information "the disclosure of which would endanger the life or physical safety of any person or identify the source of information or assistance given in confidence for law enforcement or security purposes".

The other section exempts disclosure of "information which would impede the process of investigation or apprehension or prosecution of offenders".

The RBI was asked to share copies of complaints of any alleged irregularities in the PMC bank and the action taken on each one of them.

"We have received two complaints," the central bank said, without giving the details of the second complaint.

ALSO READ | RBI taking necessary actions to provide relief to customers: Anurag Thakur on PMC Bank Case

The multi-state co-operative bank has been under the RBI restriction since September 23, after the central bank had found financial irregularities, including huge under-reporting of loans and non-performing assets to real estate developer HDIL to the tune of Rs 6,500 crore, against its entire assets of Rs 8,880 crore, using hundreds of dummy accounts.

The central bank had sacked the board of the bank and appointed an administrator.

The RBI said it has received complaints forwarded to it by the Finance Ministry for comments or direct reply to the complainants.

"We have so far not received any written communication from the Finance Ministry apart from complaints received by them forwarded to us for comments/direct reply to complainant," it said.

More from Nation.

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp