- The Government of India on January 25, 2022 has sanctioned and notified the Scheme for the amalgamation of the Punjab and Maharashtra Co-operative Bank Ltd. (PMC Bank) with Unity Small Finance Bank Ltd. (USFBL).
- This means that from January 25, 2022 all the branches of the PMC Bank will function as branches of Unity Small Finance Bank Ltd.
- Unity Small Finance Bank Limited is promoted by Centrum Financial Services Limited along with Resilient Innovation Private Limited. Both the promotors have infused capital of ₹1105.10 crore in the bank.
- After the amalgamation of PMC Bank with Unity SFB, Unity SFB will pay the customers of PMC Bank the amount it receives from DICGC (maximum upto amount insured by DICGC i.e Rs 5 Lakh) in installments of 10 years.
- Section 45 of the Banking Regulation Act, 1949 empowers the Reserve Bank of India to prepare a scheme of reconstruction or amalgamation of banking companies (which include co-operative banks).
Points to reemember:
- Which act/section gives RBI power for the amalgamation of banks?- Sec 45 of BR Act 1949
- PMC Bank (Transferor Bank) amalagamated with?- Unity SFB (Transferee Bank)
- The account holders of PMC Bank will get their money in installments of how many years?- 10 years
- Headquarters of Unity SFB- Mumbai
RBI had issued “All Inclusive Directions” to the Punjab and Maharashtra Co-operative Bank Limited under Section 35A and Section 56 of the Banking Regulation Act, 1949 with effect from close of business of September 23, 2019. After which the account holders of the bank could not withdraw all the money.
After the amalgamation of PMC Bank with Unity SFB, Unity SFB will pay the customers of PMC Bank the amount it receives from DICGC (maximum upto amount insured by DICGC i.e Rs 5 Lakh) in installments of 10 years.