NS reserve Bank of India The draft plan for amalgamation of Punjab and Maharashtra Cooperative (PMC) Bank was made public today. Unity Small Finance Bank ,USFB), which started operations from November 1, 2021.

PMC Bank The fraud was placed under all-inclusive directions by RBI on September 23, 2019, due to which there was a ‘sharp’ decline in the net worth of the bank. The instructions were last extended on June 25, 2021 till December 31, 2021.

The draft scheme envisages acquisition of assets and liabilities of PMC Bank including deposits by USFB with reference to the provisions of the scheme to provide greater protection to the depositors. The USFB is being set up with a capital of about Rs 1,100 crore as against the regulatory requirement of Rs 200 crore for setting up a small finance bank under the Guidelines for On-Tap Licensing of Small Finance Banks in the Private Sector. Further inflow of capital at a future date after amalgamation.