Govt notifies amalgamation of PMC Bank with Unity Small Finance Bank Ltd

The government on January 25, 2022 notified the Punjab and Maharashtra Cooperative (PMC) Bank amalgamation scheme with Delhi-based Unity Small Finance Bank Ltd (USFBL), with effect from January 25, 2022. 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.

Under the scheme of amalgamation released by the government, all assets and liabilities of PMC Bank stand transferred to USFBL from January 25, 2022. Initially, the insurance money received from the Deposit Insurance and Credit Guarantee Corporation (DICGC) will be paid to all eligible depositors subject to a ceiling of Rs 5 lakh. 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).