On November 15, the government empowered the RBI to refer stressed non-banking finance companies and housing finance companies having assets worth at least Rs 500 crore to the insolvency court.
In late September, the RBI had restricted activities of PMC Bank for six months and asked it not to grant or renew any loans and advances, make any investment or incur any liability, including borrowal of funds and acceptance of fresh deposits.
Solicitor General Tushar Mehta, appearing for the Centre, informed the court that the government shares the concern of PMC bank account holders and are taking effective steps to attach the properties of wrongdoers among PMC bank officials.
Based on a complaint filed by the bank against its officials and borrowers associated with the fraud/financial irregularities in the bank and manipulation of its books of accounts, the Economic Offences Wing, Maharashtra Police, has started its investigations into the matter.
The minister, who is also Minister for Environment, Forest and Climate Change, said the government has simplified the process of environmental clearances.
The six-member monetary policy committee (MPC) headed by Governor Shaktikanta Das announced the decision after a three-day meeting. Earlier on February 7, April 4, June 6 and Aug 7, the central bank had reduced the key lending rate to infuse liquidity and push economic growth.
The RBI's monetary policy committee is expected to announce the fifth consecutive rate cut this year to support government measures for boosting economic activity amid benign inflation.
The decision of the Government to merge some of the banks have made big news, while the public's outrage was seen when the limit to withdraw money was lowered down to Rs 1000 from the PMC by RBI.
Reserve Bank on Thursday increased the withdrawal limit from Rs 1,000 to Rs 10,000. The RBI had capped withdrawals at Rs 1,000 per customer during the six-month period, and banned the bank from extending new loans.
The directions are imposed in exercise of powers vested with the RBI under sub-section (1) of Section 35A of the Banking Regulation Act 1949 read with section 56 of the act.