Restrictions on Punjab and Maharashtra Cooperative (PMC) Financial institution have been prolonged for an additional three months until March 31, 2022.
Reserve Financial institution of India (RBI) has prolonged the restrictions as additional motion on the draft scheme for the takeover of the crisis-hit financial institution by the Delhi-based Unity Small Finance Financial institution (USFB) is in course of.
It had ready a draft scheme of amalgamation and the identical was positioned within the public area on November 22 as a part of looking for ideas and objections, if any, from members, depositors and different collectors of PMC Financial institution and USFB. The deadline for submitting the feedback was until December 10.
“Additional motion with regard to sanction of the scheme is beneath course of,” RBI stated on Tuesday because it prolonged the restrictions for an additional three months until March 31, 2022, topic to evaluation.
In September 2019, RBI had outmoded the board of PMC Financial institution and positioned it beneath regulatory restrictions, together with a cap on withdrawals by its clients, after detection of sure monetary irregularities, hiding and misreporting of loans given to actual property developer HDIL.
The restrictions have been prolonged a number of occasions since then. The instructions had been final prolonged in June this yr and are in place until December 31.
The draft scheme of amalgamation envisages a takeover of the property and liabilities of PMC Financial institution, together with deposits, by USFB, thus giving a higher diploma of safety for the depositors, RBI had stated final month.
USFB, promoted by Centrum Monetary Companies together with Resilient Innovation Pvt Ltd as ‘joint investor’, was granted a banking licence in October 2021. USFB began performing on November 1.