PMC Bank Branches To Function As Entities Of Unity Small Finance Bank
With the Centre notifying the merger of PMC Bank and the USFBL with effect from January 25, the depositors can withdraw money in a phased manner or continue to have their accounts with the new entity
New Delhi: Crisis-hit Punjab and Maharashtra Cooperative Bank (PMC Bank) branches will now operate as branches of Unity Small Finance Bank Ltd (USFBL).
This move comes as a relief to jittery depositors, as the two-year long RBI-led revival process finally completes.
With the central government notifying the scheme of merger of PMC Bank and the USFBL with effect from January 25, the bank’s depositors can now withdraw their money in a phased manner or continue to have their accounts with the new entity, reported PTI.
In a not-so-common regulatory move, the Reserve Bank of India (RBI), in September 2019, superseded the PMC Bank board and imposed various restrictions, including capping withdrawals by customers, after financial irregularities of the lender came to light.
The RBI in a release said, “The amalgamation will come into force with effect from the date of the notification of the scheme i.e. January 25, 2022. All the branches of the PMC Bank will function as branches of the USFBL with effect from this date,” The central bank also said the USFBL is making necessary arrangements to implement the provisions of the scheme, which envisages takeover of the assets and liabilities of PMC Bank, including deposits, according to terms of the provisions of the scheme.
USFBL, promoted by Centrum Financial Services along with Resilient Innovation as a joint investor, was granted banking licence in October 2021. USFBL started functioning on November 1.
The promoters of USFBL along with the joint investor have infused a capital of Rs 1,105.10 crore in USFBL as on November 1, 2021.
PMC Bank had 137 branches across six states when the RBI superseded the bank’s board in September 2019. Of the 137 branches, 103 were in Maharashtra.
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