ETBFSIThe Reserve Bank of India today placed in the public domain the draft scheme of amalgamation of the Punjab and Maharashtra Cooperative (PMC) Bank with Unity Small Finance Bank (USFB), which commenced operations from November 1, 2021.
PMC Bank was placed under All-Inclusive Directions on September 23, 2019, by the RBI on account of fraud which led to a 'steep' deterioration in the net worth of the bank. The directions were last extended on June 25, 2021 up to December 31, 2021.
The draft scheme envisages the takeover of the assets and liabilities of PMC Bank including deposits, by the USFB in terms of the provisions of the scheme giving a greater degree of protection for the depositors. USFB is being set up with a capital of around Rs 1,100 crore as against the regulatory requirement of Rs 200 crore for setting up of a Small Finance bank under the Guidelines for on-tap licensing of small finance banks in the private sector, with provision for further infusion of capital at a future date after amalgamation.
PMC Bank was placed under All-Inclusive Directions on September 23, 2019, by the RBI on account of fraud which led to a 'steep' deterioration in the net worth of the bank. The directions were last extended on June 25, 2021 up to December 31, 2021.
The draft scheme envisages the takeover of the assets and liabilities of PMC Bank including deposits, by the USFB in terms of the provisions of the scheme giving a greater degree of protection for the depositors. USFB is being set up with a capital of around Rs 1,100 crore as against the regulatory requirement of Rs 200 crore for setting up of a Small Finance bank under the Guidelines for on-tap licensing of small finance banks in the private sector, with provision for further infusion of capital at a future date after amalgamation.
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