The Central authorities on Tuesday sanctioned and notified the scheme for the amalgamation of Punjab and Maharashtra Co-operative Bank Ltd (PMC Bank) with Unity Small Finance Bank Ltd. (USFBL).
The amalgamation will come into pressure with impact from the date of the notification of the scheme — January 25, 2022. All the branches of the PMC Bank will operate as branches of Unity Small Finance Bank Ltd with impact from this date, the RBI stated.
“USFBL is making necessary arrangements to implement the provisions of the scheme,” it stated. 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.
The Scheme of Amalgamation notified on Tuesday envisages takeover of the property and liabilities of PMC Bank, together with deposits, by the USFBL when it comes to the provisions of the scheme. Following the amalgamation, depositors of PMC Bank will get their a reimbursement 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 acquired from DICGC to eligible depositors.
For the remaining quantity, the financial institution can pay 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 your entire remaining quantity will likely be paid after 10 years.
