The name of the troubled PMC Bank has changed, now what will happen to the money of the customers
Let us tell you that after the case of financial irregularities came to light about two and a half years ago, the Reserve Bank had dissolved the board of PMC Bank. The government notified the merger plan on Tuesday, approving it.
USFBL is making necessary arrangements for implementation of the provisions of this scheme.
Reserve Bank of India (RBI) by about two and a half years ago Punjab And Maharashtra Co-Operative Bank (PMC Bank, After dissolving the board of Unity Small Finance Bank Approved the merger with the troubled lender. The merger of stressed PMC Bank with Unity SFB was completed on January 25. With this, now the branches of PMC Bank will function as branches of USFBL. The Reserve Bank has given this information. The central bank said that the branches of PMC Bank have started functioning as branches of USFBL from Tuesday.
Let us tell you that after the case of financial irregularities came to light about two years ago, the Reserve Bank had dissolved the board of PMC Bank. The government notified the merger plan on Tuesday, approving it. USFBL Bank will acquire the deposits along with the assets and liabilities of PMC Bank under this.
The Punjab and Maharashtra Co-operative Bank Ltd. branches to operate as Unity Small Finance Bank Ltd. branches from January 25, 2022https://t.co/0uzCZkMaz2
— ReserveBankOfIndia (@RBI) January 25, 2022
USFBL is making necessary arrangements for implementation of the provisions of this scheme. The draft plan of this merger was prepared by the Reserve Bank, which was made public on November 22, 2021.
The scam was exposed in 2019
A loan of Rs 6500 crore was given to a developer through fake accounts in PMC Bank. The information about this scam was known to the Reserve Bank in the year 2019. The Reserve Bank had imposed strict restrictions on the bank in September 2019. RBI’s Moratorium is in place from 23 September 2019. Under this, withdrawal restrictions were imposed on the depositors of the bank. RBI had dissolved the board of PMC Bank.
RBI prepared a plan of victory
This merger plan was prepared by the Reserve Bank of India and it was publicly released on 22 November. And suggestions and objections were sought on this. The last date for submitting comments was December 10. The Reserve Bank had said that under this draft scheme of merger, USFB Bank will acquire the deposits including the assets and liabilities of PMC Bank. This will give better protection to the depositors of the bank. USFB has been formed with a capital of Rs 1,100 crore.
Unity Small Finance Bank Limited is a joint venture between Centrum Group and BharatPe. It started operations as a small finance bank on November 1, 2021.
investors will get their money
The deposits of the customers of Punjab and Maharashtra Co-operative Bank will be returned within the next 3-10 years. Unity Small Finance Bank will give a guaranteed amount of up to Rs 5 lakh to the depositors under DICGC. If deposits above 5 lakhs, he should pay additional 50 thousand rupees within two years, up to 1 lakh rupees within 3 years, 3 lakhs within 4 years, 5.5 lakhs within 5 years and above within 10 years Will give
