Dedications

In PMC Bank case the Bank has defaulted depositors and does not even negotiates with depositors. On the contrary what is done.

The Reserve Bank of India decides on an Amalgamation Scheme, fools the depositions to send in their suggestions and feedback to the Scheme and slaps the same Scheme back on to the depositors, with minor changes. Then why ask the depositors for suggestions, when it was a take it or lump it scheme? The scheme does not speak of what happens when the defaulters properties get liquidated?

The Bank is then gifted to Bharat Pe and Centrum. Credentials of then Bharat Pe owner Ashneer Grover is in the Public Domain. Gifted with all the existing assets of PMC Bank. Could these two entities not just apply for a Small Finance Bank license and start one on their own? Why was PMC Bank given on a platter to them? There was allegedly another investor who came with a bigger investment and assurance to pay back all PMC Bank depositors. Why was that investor rejected? Why was Maharashra Governement proposal to merge PMC Bank with³ Maharashtra State Cooperative Bank rejected? Below is the news link (Select the link to open)

https://m.economictimes.com/industry/banking/finance/banking/maha-govt-suggests-merger-of-troubled-pmc-bank-with-msc-bank/articleshow/72383527.cms

The new entity Unity Bank SFB which was formed by Bharat Pe and Centrum, floated a One Time Settlement which offered a settlement on 10 lakhs which was payable in 5 years with no interest, with a One Time Payout with a haircut of around 38%. Is this a haircut or plain Banking goodaism? The scheme was not even approved by RBI. Then who gave Unity Bank the right to this extortion?

Why was the One Time Settlement suddenly cancelled and withdrawn? So can Unity Bank be Banking Terrorist who tomorrow may even back out of the Amalgamation scheme? As the scheme even though forced on to PMC Customers by RBI, RBI is not taking any responsibility or even backing it with a Sovereign guarantee. To the extent the Amalgamation scheme does not even offer the basic DICGC Insurance of 5 lakhs. The Insurance is usually when a Bank goes belly up. Practically in all cases due to scams in connivance of Banking officials, Politicians and The Reserve Bank of India.

So in the case of Unity Bank if they can cancel their own One Time Settlement Scheme what can stop them from canceling the Amalgamation scheme or pay for few years as the initial years pay outs are paltry and then not honor the scheme? What if tomorrow Unity Bank SFB declares bankruptcy  then all PMC Bank depositors are just thrown to the wind.

Why is India having divisive and sectarian banking laws? Where some banks can get away with scams and some cannot? Instead of pushing a Common Civil Code, India should start with a Common Banking Code. Are the winds of change blowing this nation to a state of no justice? Is Banking in India a scam or a sham?

# posted by Sunny Fernandes @ 7:34 PM