PMC Bank amalgamation with Unity SFB gets govt nod

🔴 The amalgamation will come into force with effect from the date of the notification of the scheme — January 25, 2022. All the branches of the PMC Bank will function as branches of Unity Small Finance Bank Ltd with effect from this date, the RBI said.

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“USFBL is making necessary arrangements to implement the provisions of the scheme,” it said. (Representational)

The Central government 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 force with effect from the date of the notification of the scheme — January 25, 2022. All the branches of the PMC Bank will function as branches of Unity Small Finance Bank Ltd with effect from this date, the RBI said.

“USFBL is making necessary arrangements to implement the provisions of the scheme,” it said. Unity SFB is a joint venture between Centrum Group and BharatPe. It commenced operations as a small finance bank (SFB) with effect from November 1.

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The Scheme of Amalgamation notified on Tuesday envisages takeover of the assets and liabilities of PMC Bank, including deposits, by the USFBL in terms of the provisions of the scheme. Following the amalgamation, depositors of PMC Bank will get their money back over a period of 3-10 years. It said the transferee bank (Unity) will first make the payment of up to Rs 5 lakh or less received from DICGC to eligible depositors.

For the remaining amount, the bank will pay up to Rs 50,000 above the payment already made at the end of two years, followed by an amount of up to Rs 1 lakh at the end of three years, Rs 3 lakh at the end of four years and Rs 5.5 lakh at the end five years.

The RBI said the entire remaining amount will be paid after 10 years.

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