RBI Extends Restrictions On PMC Bank Till March 31, 2022
The ban on Punjab and Maharashtra Co-operative (PMC) Bank has been extended for three months till March 31, 2022.
The Reserve Bank of India (RBI) has extended the restrictions as further action on the draft plan for the takeover of the troubled bank by Delhi-based Unity Small Finance Bank (USFB) is in process.
It had prepared a draft plan of amalgamation and it was placed in the public domain on November 22 as part of seeking suggestions and objections from members, depositors and other creditors of PMC Bank and USFB. The deadline for submission of comments was till December 10.
“Further action with regard to the approval of the scheme is under process as it has extended the restrictions for a further three months till March 31, 2022, subject to review,” RBI said on Tuesday.
In September 2019, the RBI superseded the board of PMC Bank and called it regulatory after finding certain financial irregularities, concealment and misreporting of loans given to real estate developer HDIL, including a cap on withdrawals by its customers. was placed under sanctions.
The restrictions have been extended several times since then. The directions were last extended in June this year and are in force till December 31.
RBI had said last month that the draft scheme of amalgamation envisages acquisition of assets and liabilities of PMC Bank, including deposits, by USFB, thus providing greater protection to depositors.
USFB, promoted by Centrum Financial Services with Resilient Innovation Pvt Ltd as a ‘joint investor’, was granted the banking license in October 2021. The USFB began operations on 1 November.