The Reserve Bank of India (RBI) on Monday launched a draft scheme of amalgamation of fraud-hit Punjab and Maharashtra Cooperative (PMC) Bank and Delhi-based Unity Small Finance Bank. Unity SFB is a three way partnership between Centrum Group and BharatPe. It commenced operations as a small finance financial institution (SFB) with impact from November 1.
According to the draft scheme of amalgamation, following the amalgamation, depositors of PMC Bank will get their a refund over a interval of 3-10 years. It stated the transferee financial institution (Unity) will first make the cost of as much as Rs 5 lakh or much less obtained from DICGC to eligible depositors.
For the remaining quantity, the financial institution pays as much as Rs 50,000 above the cost already made on the finish of two years, adopted by an quantity of as much as Rs 1 lakh on the finish of three years, Rs 3 lakh on the finish of 4 years and Rs 5.5 lakh on the finish 5 years. The RBI stated all the remaining quantity will probably be paid after ten years.
The draft stated the takeover of property and liabilities of PMC Bank, together with deposits, by Unity, will give a better diploma of safety for the depositors. “It may be seen that Unity SFB is being set up with capital of about Rs 1,100 crore as against a regulatory requirement of Rs 200 crore for setting up of a small finance bank under the guidelines for on-tap licensing of small finance bank in private sector dated December 5, 2019, with provision for further infusion of capital at a future date after amalgamation,” the RBI scheme stated.
It additionally stated the curiosity on any interest-bearing deposit with the transferor (PMC) financial institution is not going to accrue after March 31, 2021. The RBI stated it will obtain solutions and objections on the draft until 5.00 pm, December 10, submit which it would take a last name on the merger.
