rbi
The Reserve Bank of India (RBI) has announced the extension of the validity period for Directions imposed on the Punjab and Maharashtra Cooperative Bank Limited (PMC Bank), located in Mumbai, Maharashtra.
PMC Bank, designated as a Multi-State Urban Cooperative Bank, was initially placed under All-Inclusive Directions according to Sub-section (1) of Section 35-A along with Section 56 of the Banking Regulation Act, 1949. This action took effect at the close of business on September 23, 2019, aimed at ensuring depositor protection. The Directions were most recently extended by Directive dated June 25, 2021, which was valid until December 31, 2021.
In accordance with the powers granted by Sub-section (4) of Section 45 and Section 56 of the Banking Regulation Act, 1949, the RBI has drafted a scheme for the amalgamation of PMC Bank with Unity Small Finance Bank Limited (USFB). This draft scheme was made public on November 22, 2021, inviting suggestions and objections from members, depositors, and creditors of both PMC Bank and USFB until December 10, 2021, in compliance with Section 45(6)(b) of the aforementioned Act. The process for sanctioning the scheme is currently underway.
In light of the above considerations, the RBI has deemed it necessary to extend the previously imposed Directions. As of now, the validity of the Directive dated September 23, 2019, along with its modifications, is officially extended through March 31, 2022. All other terms and conditions under the existing Directives will remain unchanged.