The banking infrastructure has undergone wholesale changes initiated by the Government. Due to the inherent problems associated with the economic framework of the country. Due to the mounting pressure on the country’s finances, it has been difficult to register positive figures in economic growth and development, and thereby the need has arisen to initiate a process of economic recovery whereby the banking institutions would emerge as powerful and authoritative financial entities capable of generating large-scale revenue.
The now-defunct and cash-strapped Punjab and Maharashtra Co-Operative (PMC) Bank has found three potential investors who are prepared to invest and liquidate money, buy shares, take over the management control of the company and initiate the process of internal reconstruction. The mounting pressure of Non-Performing Assets (NPAs) and the increasing proportion of bad loans have been the two primary reasons for the negativity surrounded by the banking infrastructure of PMC. The bank was accused of monetary forgery and irregularity in large-scale transactions with a payment of 6,200 crores to the Housing Development Infrastructure Limited (HDIL) being one of the frontal economic irregularities in which it got involved. The RBI Governor Shaktikanta Das has said that there have been three potential investors who have been identified for investing in the process of internal reconstruction and management authority transfer of PMC Bank. Once the investors submit their final documents of eligibility, upon the approval of the documents and necessary verification process, the RBI would pass the necessary regulatory approval and would thus initiate the process of dissolution, reconstruction, and business acquisition.
In 2019, the Economic Offences Wing (EOW) of the Mumbai police arrested PMC Bank’s former managing director Joy Thomas. He was actively involved with the economic forgery and monetary manipulation that led to an uncalled increase in assets and problems associated with the functioning of the banking system. The promoters of HDIL, Rakesh Wadhawan, and Sarang Wadhawan had committed tax frauds and are facing charges under a non-bailable offence