In September 2019, RBI dissolved the bank’s board and took over after PMC Bank was caught with major financial irregularities.
The Reserve Bank of India (RBI) on Tuesday, December 28, extended the restrictions and directives imposed on Punjab and Maharashtra Co-operative Bank (PMC Bank) till March 31, 2022. Earlier, these sanctions were imposed till January 1, 2022.
Earlier, the RBI had prepared a draft resolution on November 22, 2021, under which Unity Small Finance Bank was to take over PMC Bank. The RBI has invited suggestions and objections from members, depositors and other lenders of both the banks in this draft, the last date for submission was December 10, 2021.
The plan is in the process of being approved. The RBI said, “Therefore, the above guidelines and restrictions need to be extended. Therefore, it has been extended to March 31, 2022. Note that after major financial irregularities were caught in PMC Bank, the board of RBI dissolved the bank in September 2019 and it is in its own hands.” Was taken.
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Under a draft project initiated by the RBI to merge PMC Bank with Unity Small Finance Bank (USFB), the assets and liabilities of PMC Bank will be transferred to USFB. This includes refunds to PMC Bank customers. These terms are included in the consolidation agreement with the USFB to protect customers’ money.
When will PMC Bank customers receive money?
Customers whose money is stuck in PMC Bank will get full refund in next three to 10 years. According to the RBI’s draft scheme, USFB will guarantee depositors up to Rs 5 lakh. As for the rest of the money, the bank will pay another Rs 50,000 in the next two years. 1 lakh more will be given at the end of three years. 3 lakhs at the end of 4 years and 5.5 lakhs at the end of 5 years. At the end of 10 years, the remaining amount will be paid to the customers of PMC Bank.