RBI imposes restrictions on PMC Bank, depositors can’t withdraw more than Rs 1K

Agencies
September 24, 2019

Mumbai, Sept 24: Dealing a pre-festival season blow to lakhs of unsuspecting customers, the Reserve Bank of India on Tuesday barred the Punjab & Maharashtra Cooperative (PMC) Bank Ltd from carrying out a majority of its routine business transactions for a six-month period.

The move sent panic waves among the depositors, investors and the city's banking and business circles of the PMC Bank which ranks among the top 10 cooperative banks in the country.

In a terse communique issued late on Monday, RBI Chief General Manager Yogesh Dayal said as per the apex bank's directions, depositors cannot withdraw more than Rs 1,000 from their savings/current/other deposit accounts, leading to huge chaos outside the PMC branches in Mumbai and other parts of India.

Described as a multi-state cooperative banking entity founded in 1984 from a small room in Mumbai, the PMC Bank has grown to 137 branches - in Maharashtra (103), Delhi (6), Karnataka (15), Goa (6), Gujarat (5), and Madhya Pradesh (2).

As per the RBI sanctions, the PMC Bank is debarred for six months from granting, renewing any loans and advances, make any investments, incur any liability, including borrowal of funds or accept fresh deposits, etc, without the prior written approval from RBI.

The RBI has also restricted it from disbursing, agreeing to disburse any payment, whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangements and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI notification of Monday.

Hoping to assuage the customers' sentiments, PMC Bank's Managing Director (MD) Joy Thomas said the bank had been put under regulatory restrictions by the RBI owing to irregularities disclosed to the apex bank.

"As the MD of the Bank, I take full responsibility and assure all the depositors that these irregularities will be rectified before the expiry of six months," Thomas told the bank's distressed customers.

He said that it was a difficult time for all, but urged the people to cooperate, even as the police were deployed outside many branches in the city to avert any untoward incidents.

As per the PMC Bank's latest Annual Report, it has deposits of over Rs 11,617 crore and loans/outstandings of Rs 8,383 crore.

Confusion reigned supreme outside many of the PMC Bank branches in Mumbai, Thane and other cities as depositors - mostly MSMEs and ordinary families - made a beeline to get their monies back, but were not allowed.

"We are completely ruined. We have no money at home for even basic needs. They should allow us to withdraw more or close down our accounts," a weeping woman customer told mediapersons outside the branch in Bhandup.

Another customer in Borivali said the RBI should penalize the bank management for any irregularities instead of blocking customers' accounts.

"This Rs 1,000 limit is ridiculous. We have to make purchases for Navratri, Diwali, pay our children's educational fees and other household expenses. How can we manage ?" the fuming man asked.

Former BJP MP Kirit Somaiya said he was informed of the regulatory orders against the PMC Bank and has raised the issue with the RBI and the Ministry of Finance in the interests of the customers.

"@PMC_Bank says they are under 35A of BR by the @RBI and the thing is I have all my savings stuck in that bank and they say I cannot withdraw my money now.. What do I do.. People here have all their savings in the bank and the bank says they can't help," customer Avinash Sharma tweeted.

Another customer Praful Shah tweeted: "#PMCBank. Its nothing but bankruptcy. My 25 lakhs, saved for daughters' marriages, are now trapped. My lifetime saving getting washed out overnite. Feeling sad."

Comments

kushal kumar
 - 
Wednesday, 25 Sep 2019

  1. According  to  news  reports  ,  RBI  announced  on  24  September  ,  2019  restrictions  on  the  Punjab  &  Maharashtra  Cooperative  ( PMC )  Bank  from  carrying  out   a  majority  of  its  routine  transactions  for  a  period  of  six  months.  Obviously  ,  the  RBI  move  while  being  well  intentioned  ,  has  put  customers  in  a  very  tight  position,  disabling  them  from  carrying  on  their  life  as  usual  for  no  fault  on  their  part  as  they  may  not  be  able  to  withdraw  more  than  rupees  one  thousand  during  the  restriction  period.  In  this  context  ,  it  may  be  apt  to  refer  readers  to  this  Vedic  astrology  writer’s  predictive  alert  through  article  - “  World  trends  in  April  to  August 2019”  -  brought  to  public  domain  widely  in  March  and  subsequently  on  5 April  2019.  The  predictive  alert  had  said  that  during  a  period  of  four  and  a  half  months  from  mid-April  to  August 2019  ,  among  other   countries  specified  in  the  article  ,  more  care  and  appropriate  strategy    may  be  called  for    in  India  also  in  relation  to  the  following :-

    “ 1. Economic  and  financial  aspects  may  reflect  major  worrisome  concerns.”

    A  review  of  the  predictive  alerts  carried  out  by  this  writer  in  May  2019  had  suggested  that   such  need  for  more  care  and  appropriate  strategy   may  reach  out  to  mid-October  ,  while  the  period  from  about  7  August  to  9 October  could  be  particular.  And  within  that  period  ,  25  September  to  9 October  in  2019  looked  to  be  more  particular.  It  seems  that  announcement  of  RBI  on  24  September  2019  can  be  counted  as  meaningfulness  of  the  predictive  alert. 

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News Network
June 29,2020

New Delhi/ Jammu, Jun 29: Syed Ali Shah Geelani, the face of Kashmir's separatist politics for over three decades, has quit the Hurriyat Conference, the biggest separatist amalgam in Kashmir. The 90-year-old, who had led the separatist movement in Kashmir Valley since the 1990s, was a lifelong chairman of the Hurriyat.

He has mostly been in house arrest since 2010, when anger and violence over police firing on protesters consumed Kashmir.

In an audio message, Syed Ali Shah Geelani said he was announcing his resignation from the All Party Hurriyat Conference because of "the current circumstances" in the umbrella group.

"In view of the current state of the Hurriyat Conference, I am announcing my complete dissociation from the forum. In this context I have already sent a detailed letter to all constituents of the forum," said Geelani in an audio message released this morning.

This marks a major development for separatist politics in Jammu and Kashmir after the government ended its special status under the constitution's Article 370 in August last, split it into two union territories and enforced massive restrictions in movement besides jailing scores of leaders.

Geelani also released a two-page letter in which he accused constituents of Hurriyat of inaction after the scrapping of Article 370.

"I sent messages to you through various means so the next course of action could be decided but all my efforts were in vain. Now that the sword of accountability is hanging over your heads for the financial and other irregularities, you thought of calling the advisory committee meeting," he wrote.

The letter accused Hurriyat constituents of hatching "conspiracy and resorting to lies against him" and also teaming up with the Hurriyat chapter in Pakistan Occupied Kashmir, which had targeted him. "Instead of reprimanding them, you called a meeting in Srinagar and ratified their stand. You people have become part of the conspiracy and lies," said the letter.

"The lack of discipline and other shortcomings were ignored and you did not allow a robust accountability system to be established over the years but today, you have crossed all limits and indulged in rebellion against the leadership."

Sources say Geelani had been attacked by groups in Pakistan for what they called his failure to respond to the government's big move. Many questioned the silence of the separatist hardliner, who was prone to calls for protest shutdowns and election boycotts.

A three-time MLA from Sopore, Geelani quit electoral politics after militancy erupted in Kashmir. Recent reports have claimed that he has been unwell.

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Agencies
June 30,2020

United Nations, Jun 30: India accounts for 45.8 million of the world's 142.6 million "missing females" over the past 50 years, a report by the United Nations said on Tuesday, noting that the country along with China form the majority of such women globally.

The State of World Population 2020 report released on Tuesday by the United Nations Population Fund (UNFPA), the world organisation's sexual and reproductive health agency, said that the number of missing women has more than doubled over the past 50 years - from 61 million in 1970 to a cumulative 142.6 million in 2020.

Of this global figure, India accounted for 45.8 million missing females as of 2020 and China accounted for 72.3 million.

Missing females are women missing from the population at given dates due to the cumulative effect of postnatal and prenatal sex selection in the past, the agency said.

Between 2013 and 2017, about 460,000 girls in India were missing' at birth each year. According to one analysis, gender-biased sex selection accounts for about two-thirds of the total missing girls, and post-birth female mortality accounts for about one-third, the report said.

Citing data by experts, it said that China and India together account for about 90-95 per cent of the estimated 1.2 million to 1.5 million missing female births annually worldwide due to gender-biased (prenatal) sex selection.

The two countries also account for the largest number of births each year, it said.

The report cites data by Alkema, Leontine and others, 2014 National, Regional, and Global Sex Ratios of Infant, Child, and under-5 Mortality and Identification of Countries with Outlying Ratios: A Systematic Assessment' from The Lancet Global Health.

According to their analysis, India has the highest rate of excess female deaths, 13.5 per 1,000 female births, which suggests that an estimated one in nine deaths of females below the age of 5 may be attributed to postnatal sex selection.

The report notes that governments have also taken action to address the root causes of sex selection. India and Vietnam have included campaigns that target gender stereotypes to change attitudes and open the door to new norms and behaviours.

They spotlight the importance of daughters and highlight how girls and women have changed society for the better. Campaigns that celebrate women's progress and achievements may resonate more where daughter-only families can be shown to be prospering, it said.

The report said that successful education-related interventions include the provision of cash transfers conditional on school attendance; or support to cover the costs of school fees, books, uniforms and supplies, taking note of successful cash-transfer initiatives such as Apni Beti Apna Dhan' in India.

It said that preference for a male child manifested in sex selection has led to dramatic, long-term shifts in the proportions of women and men in the populations of some countries.

This demographic imbalance will have an inevitable impact on marriage systems. In countries where marriage is nearly universal, many men may need to delay or forego marriage because they will be unable to find a spouse, the report said.

This so-called "marriage squeeze", where prospective grooms outnumber prospective brides, has already been observed in some countries and affects mostly young men from lower economic strata.

"At the same time, the marriage squeeze could result in more child marriages, the report said citing experts.

Some studies suggest that the marriage squeeze will peak in India in 2055. The proportion of men who are still single at the age of 50 is forecast to rise after 2050 in India to 10 per cent, it said.

The UN report said that every year, millions of girls globally are subjected to practices that harm them physically and emotionally, with the full knowledge and consent of their families, friends and communities.

At least 19 harmful practices, ranging from breast ironing to virginity testing, are considered human rights violations, according to the UNFPA report, which focuses on the three most prevalent ones: female genital mutilation, child marriage, and extreme bias against daughters in favour of sons.

Harmful practices against girls cause profound and lasting trauma, robbing them of their right to reach their full potential, says UNFPA Executive Director Dr. Natalia Kanem.

This year, an estimated 4.1 million girls will be subjected to female genital mutilation. Today, 33,000 girls under age 18 will be forced into marriages, usually to much older men and an extreme preference for sons over daughters in some countries has fuelled gender-biased sex selection or extreme neglect that leads to their death as children, resulting in the 140 million missing females.

The report said that ending child marriage and female genital mutilation worldwide is possible within 10 years by scaling up efforts to keep girls in school longer and teach them life skills and to engage men and boys in social change.

Investments totalling USD 3.4 billion a year through 2030 would end these two harmful practices and end the suffering of an estimated 84 million girls, it said.

A recent analysis revealed that if services and programmes remain shuttered for six months due to the COVID-19 pandemic, an additional 13 million girls may be forced into marriage and 2 million more girls may be subjected to female genital mutilation between now and 2030.

The pandemic both makes our job harder and more urgent as so many more girls are now at risk, Kanem said.

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News Network
February 11,2020

New Delhi, Feb 11: The government has decided to rename National Institute of Financial Management (NIFM), Faridabad, as Arun Jaitley National Institute of Financial Management, an official statement said on Tuesday.

Set up in 1993 as a registered society under the Department of Expenditure, NIFM trains officers of Finance and Accounts Services recruited by the Union Public Service Commission (UPSC) as also officers of Indian Cost Accounts Service. The Union Finance Minister is the President of the NIFM Society.

"Aligning the vision and aspiration of the Institute for the future with the vision and contribution of late Arun Jaitley, the Government has decided to rename National Institute of Financial Management (NIFM) as the Arun Jaitley National Institute of Financial Management(AJNIFM)," the statement said.

NIFM has become a premier resource centre to meet the training needs of the central government for senior and middle level of management in the fields of public policy, financial management, public procurement and other governance issues for promoting highest standards of professional competence and practice.

Padma Vibhushan awardee Jaitley was the Union Minister for Finance and Corporate Affairs during May 26, 2014 to May 30, 2019.

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