New Delhi: The branches of the crisis-hit Punjab and Maharashtra Co-operative Bank (PMC Bank) will now function as branches of Unity Small Finance Bank Limited (USFBL).
The move comes as a relief to troubled depositors, as the two-year-long RBI-led revival process is finally complete.
With the central government notifying the scheme of merger of PMC Bank and USFBL with effect from January 25, depositors of the bank can now withdraw their money in a phased manner or continue their account with the new entity.
In a non-ordinary regulatory move, the Reserve Bank of India (RBI), in September 2019, superseded the PMC Bank board and imposed various restrictions, including limiting withdrawals by customers, after the lender’s financial irregularities came to light.
“This will be effective from the date of notification of the amalgamation scheme i.e. January 25, 2022. All branches of PMC Bank will function as branches of USFBL from this date,” RBI said in a release. The central bank also said that the USFBL scheme Making necessary arrangements for carrying out the provisions of the Scheme, which envisages acquisition of assets and liabilities of PMC Bank, including deposits, in accordance with the provisions of the Scheme.
USFBL, promoted by Centrum Financial Services with Resilient Innovations as joint investor, was granted banking license in October 2021. USFBL started functioning from 1st November.
The promoters of USFBL along with joint investors have infused capital of Rs 1,105.10 crore in USFBL as of November 1, 2021.
When RBI superseded the bank’s board in September 2019, PMC Bank had 137 branches across six states. Out of 137 branches, 103 were in Maharashtra.
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