RBI has extended the ban on PMC Bank till December 31.
The Reserve Bank of India (RBI) has extended the ban on Punjab and Maharashtra Co-operative (PMC) Bank till December 31, 2021, keeping in view the likely time required for the bank’s restructuring process.
The decision came a week after the RBI gave “in-principle” approval to Centrum Financial Services to set up a small finance bank (SFB), thereby laying the decks for the takeover of crisis-hit PMC Bank by Centrum and BharatPe. approved partners.
In response to the Expression of Interest (EoI) dated November 3, 2020 issued by PMC Bank for its reconstruction, certain proposals were received. After careful consideration, the proposal of Centrum Financial Services Limited (CFSL) and Resilient Innovation Private Limited (BharatPe) has been found prima facie viable, an RBI statement said.
It said that in specific pursuance of their proposal dated February 1, 2021, in response to the EoI, the central bank has granted “in-principle” approval to CFSL, valid for 120 days, to set up a small finance bank under general guidelines . Dated 5th December, 2019 for ‘on tap’ license of small finance banks in the private sector.
“Keeping in view the time required to complete the various activities involved in this process, it is considered necessary to extend the above instructions,” it said.
“Accordingly, it is hereby notified for the information of the public that the validity of the said Direction dated 23rd September, 2019, as amended from time to time, has been extended for a period from 1st July, 2021 to 31st December, 2021, Review under,” it added.
PMC Bank, a Mumbai headquartered multi-state urban co-operative bank, was placed under all inclusive directions under sub-section (1) of section 35-A read with section 56 of the Banking Regulation Act, 1949. Trading on 23rd September 2019 in the interest of depositor protection. The directions were last extended up to June 30, 2021, vide directive dated March 26, 2021.
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