Have been watching the debacle of the PMC Bank which is the Punjab and Maharashtra Cooperative Bank, and how the RBI, controlled I’m sure, totally by the government, is dealing with the crisis.
Have noticed today, that there is no more a sense of fairness: It’s either majority versus minority where the majority voice wins! Or, it’s the numbers game, of how many voters are affected and how to appease the greater numbers, so as not to lose the voter base.
I see, sadly, the same win- win clever strategy being used here in dealing with the PMC bank.
Instead of concentrating on the deposits, the RBI is concentrating on the depositor.
Let me explain.
In a housing society, each member whether he’s got a small flat or big flat, is an equal share holder, but his monthly liability is proportionate to the square feet of his flat. Which means his liability is equal to his investment! In case, the society makes a profit, as seen in some societies in Bombay’s Nariman Point, the profits are directly distributed according to the proportion of the member’s investment or size of his flat.
But, here in the Banks case, instead of giving back to the investor in the PMC bank, a percentage of his locked-up savings, the RBI is cleverly distributing the same amount equally. Which means whether you have invested one crore or a mere ten thousand rupees, you get back the same amount!
If the RBI after seeing the financial position of the PMC decided it could give back to the investors 500 crores, the money should have been distributed in proportion to the amount the investor had invested.
Someone who had invested ten lakhs of his or her hard-earned money, should have got back a lakh, and investors who had put in ten thousand, could have been given back proportionately a similar percentage on their investment amount.
This way, every investor would have been treated equally.
Today, as I see less and less afflicted people protesting, and fighting their battle to get back their money, I can see the governors looking through their respective windows.
“There are a hundred of them outside!”
“Give them ten thousand rupees more, and fifty percent will not be seen tomorrow!”
This same policy is used with most everything. Potholes are not repaired for motorists who are a minority, but repaired when the vote banks are on the streets, during the Ganesh festival.
Coming back to the PMC bank, let distribution be done proportionate to the money deposited!
That is the fair way, and not the clever way, which has become the norm, in a country, where political leaders and others use cunning and craftiness instead of fairplay..!(Published on 18th November 2019, Volume XXXI, Issue 47)