Issue white paper on PMC bank fraud case: Congress to govt

Launching a scathing attack on the government, the Congress on Friday demanded that the government issue a white paper on Punjab and Maharashtra Cooperative (PMC) bank fraud case and asked it to tell the country what the situation really is.

New Delhi: The Congress on Friday demanded that the government issue a white paper on Punjab and Maharashtra Cooperative (PMC) bank fraud case and asked it to tell the country what the situation really is.

Launching a scathing attack on the government, Congress national spokesperson Gaurav Vallabh said that the government has no control on the deposits of the people in the bank and this is a serious issue.

"The Finance Minister says that the government has nothing to do in the PMC bank case. In such a situation, the common man is afraid of whether his money is safe in the banks or not? It's highly likely that now the Directors associated with PMC bank may flee the country so the government should keep an eye on them," said Vallabh.

The Congress also alleged that on September 23, the government had issued advisory and told the account holders that they cannot withdraw more than Rs 10000 money for 6 months.

"There are reports that before September 23, many people withdrew more than Rs 50,000. It creates doubts that whether few people already knew that the bank is in bad condition and their money is not safe?" alleged Vallabh.

"The PMC bank issue will have a cascading effect on the banking system as many small banks have Fixed Deposit Accounts in this bank, Vallabh added.

It is to be noted that the Congress has also blamed the Reserve Bank of India (RBI) for the "systemic failure" that led to the PMC Bank crisis and demanded answers from Finance Minister Nirmala Sitharaman, while also sought registration of an FIR against the bank's directors.