RBI announces draft scheme for amalgamation of PMC Bank: According to the notification, an effort has been made to provide greater security to the depositors.
RBI announces draft scheme for amalgamation of PMC Bank: There is good news for thousands of depositors of Punjab and Maharashtra Cooperative (PMC) Bank, the Reserve Bank has issued draft notification for the acquisition of PMC Bank for payment of depositors’ capital. According to the draft notification, ‘Unity Small Finance Bank’ will take over the assets and liabilities associated with the PMC in a phased manner and the money will be returned to the depositors of PMC Bank in a maximum of 10 years.
According to the notification, efforts have been made to provide greater security to the depositors and RBI has sought suggestions and comments on the draft scheme by December 10. PMC Bank is being acquired by Unity Small Finance Bank (USFB) of Delhi. The Reserve Bank said on Monday that under the draft of this scheme of merger, USFB Bank will acquire deposits including assets and liabilities of PMC Bank. This will give better protection to the depositors of the bank.
RBI seeks suggestions from depositors and creditors
RBI sought suggestions and comments on the draft scheme by December 10. Depositors and creditors of PMC Bank can send their suggestions to RBI. PMC Bank will be acquired under the scheme of RBI. 80% of the amount of Institutional Depositors will be converted into PNCPS. The remaining 20% of the institutional depositors will be converted into equity warrants. Apart from the depositors, on other liabilities, only the principal amount will be paid.
The central bank said that it will take suggestions and objections on the draft of this scheme till 5 pm on December 10. After that he will take the final decision on this acquisition. Unity Small Finance Bank Ltd. is a joint venture between Centrum Group and BharatPe. It started operations as a small finance bank on November 1, 2021.
Depositors of PMC Bank will get the amount in 10 years
Example: If there was 20 lakh deposits when the bank was closed in 2019, then the full money will be available in 2032.
Appointed date : 1st April 2022
2022-23: 5 lakhs of DICGC in the first year
2024: Maximum 50 thousand for the second year
2025: 3rd year maximum 1 lakh
2026: 4th year maximum 3 lakhs
2027: 5th year maximum 5.5 years
2.75% interest starts on remaining 5 lakh after 5 years
2032: After 10 years the remaining 5 lakhs with interest will be 5.7 lakhs i.e. 12 years wait and the total amount of 20 lakhs got 20.7 lakhs