RBI has extended restrictions on PMC Bank until March 31, 2022
Mumbai:
Restrictions on Punjab and Maharashtra Cooperative Bank (PMC) have been extended for another three months until 31 March 2022.
The Reserve Bank of India (RBI) has extended restrictions as it takes further action on a draft crisis-hit bank takeover plan by Unity Small Finance Bank (USFB). in Delhi.
It prepared a draft consolidation plan and the same was put into the public domain on 22 November as part of a search for proposals and objections, if any, from members, depositors and other creditors of PMC Bank and USFB. The deadline for submitting comments is December 10.
“Other actions related to the sanctioning program are underway,” the RBI said on Tuesday as it extended the restrictions by three months through March 31, 2022, subject to review. .
In September 2019, RBI replaced PMC Bank’s board and placed it under regulatory restrictions, including customer withdrawal limits, after discovering several financial irregularities, concealing and misreporting loans to HDIL real estate developers.
The restrictions have been extended several times since. The guidelines were last extended in June of this year and run until December 31.
The draft consolidation plan is expected to take over the assets and liabilities of PMC Bank, including deposits, by the USFB, thus providing a higher level of protection for depositors, the RBI has said. last month.
USFB, promoted by Centrum Financial Services with Resilient Innovation Pvt Ltd as a ‘general investor’, was granted a banking license in October 2021. USFB commenced operations on November 1. .
