Draft Scheme Of Amalgamation Of PMC & USF Bank: RBI:
The Reserve Bank of India (RBI) released a draft scheme of amalgamation of Punjab and Maharashtra Cooperative (PMC) Bank and Unity Small Finance Bank (USF).
- Earlier, PMC was put under restrictions on account of fraud that led to a steep deterioration in the networth of the bank.
- According to the draft scheme of amalgamation, following the amalgamation, depositors of PMC Bank will get their money back over a period of 3-10 years.
- The interest on any interest-bearing deposit with the transferor (PMC) bank will not accrue after 31st March 2021.
- The takeover of assets and liabilities of PMC Bank, including deposits, by Unity, will give a greater degree of protection for the depositors.
- USF Bank is being set up with capital of about Rs 1,100 crore as against a regulatory requirement of Rs 200 crore for setting up a small finance bank under the guidelines for on-tap licensing of small finance banks in the private sector.