The Punjab and Maharashtra Co-operative Bank Ltd.:  Reserve Bank of India has announced a draught merger scheme.

The Punjab and Maharashtra Co-operative Bank Ltd.:  Reserve Bank of India has announced a draught merger scheme The Reserve Bank of India today made public a draught scheme for the merger of The Punjab and Maharashtra Cooperative (PMC) Bank and Unity Small Finance Bank Ltd. (USFB), a banking firm formed in India under the Companies Act, 2013, and based in New Delhi. With effect from November 1, 2021, the USFB has begun operations. PMC Bank Limited, Mumbai, Maharashtra, a Multi-State Urban Cooperative Bank, was placed under All-Inclusive Directions under Sub-section (1) of Section 35-A read with Section 56 of the Banking Regulation Act, 1949, with effect from close of business on September 23, 2019 via Directive DCBS.CO.BSD-I/D-1/12.22.183/2019-20 dated September 23, 2019 on account of fraud that resulted in a sharp decline in the bank's net worth. The directives were last extended to December 31, 2021, with a directive dated June 25, 2021. The proposed scheme of amalgamation, which was released today, envisions the USFB taking over the assets and liabilities of PMC Bank, including deposits, in accordance with the scheme's rules, which provide greater security for depositors. It can be seen that USFB is being established with capital of around 1,100 crore, compared to the regulatory requirement of 200 crore for the establishment of a Small Finance bank under the Guidelines for on-tap licencing of Small Finance banks in the Private Sector dated December 5, 2019, with the possibility of additional capital infusion after amalgamation. The Reserve Bank invites suggestions and objections, if any, from members, depositors and other creditors of transferor bank (PMC) and transferee bank (USFB), on the draft scheme, which may be sent to the address mentioned in the “Notice”. The draft scheme has also been sent to transferor bank and transferee bank for their suggestions and objections. The suggestions and objections will be received by Reserve Bank up to 5.00 PM on December 10, 2021. The Reserve Bank will take a final view thereafter.