Pimpri Chinchwad civic body has Rs 900 crore with Yes Bank

The Pimpri Chinchwad Municipal

Corporation (PCMC), the civic body of the industrial township near Pune, stated on Friday that it has over Rs 900 crore in deposits in the crisis-hit Yes Bank.

The Reserve Bank of India on Thursday imposed a moratorium on Yes Bank, capping withdrawals at Rs 50,000 for a month.

PCMC commissioner Shravan Hardikar said there was no reason for worry as the civic body has deposits of over Rs 4,000 crore in other banks.

The city unit of the Shiv Sena, however, asked why the BJP-controlled PCMC appointed Yes bank as the tax- collecting agency instead of appointing a nationalised bank.

 

In a statement issued on Friday, the Sena also asked if the decision to keep the funds with Yes Bank was taken with the permission of the general body of the corporation.

Hardikar claimed that proper procedure was followed while appointing Yes Bank to collect taxes and charges for municipal services online.

As to the payments of dues scheduled from the corporation's own Yes Bank account, he said the PCMC had enough funds with other banks.

"We have deposits of over Rs 4,000 crore with other banks. As far as meeting expenses and dues that were scheduled to go from the Yes Bank account, there is no issue as there are enough funds in other accounts," the commissioner said.