Breather for PMC Bank's depositors
Centre’s nod for amalgamating PMC Bank with Unity Small Finance Bank
image for illustrative purpose
MoS for Finance, Dr Bhagwat Krishanrao Karad, assured us that the matter has already been taken up at the Cabinet level and has been discussed in the ministry and then it would be resolved shortly, says PMC Depositors' Forum president Chander Purswani
End To Plight of Depositors
- Forum once again reiterated its demand to amend the amalgamation draft scheme
- Demands reducing amalgamation scheme of 10 yrs to 3 yrs
- Pay interest to all the depositors
- PMC depositors are losing their money with each passing day
- Bank expenses/ salaries/administrator salary and other operational costs taking a toll
- Depositors have already lost Rs1,000 cr so far
Mumbai: The Centre on Tuesday gave its nod to amalgamate Punjab and Maharashtra Co-operative Bank (PMC Bank) with the Unity Small Finance Bank (USFBL). As per the Reserve Bank of India (RBI), the amalgamation will come into force with effect from the date of the notification of the scheme i.e. January 25.
"All the branches of the PMC Bank will function as branches of Unity Small Finance Bank Ltd. with effect from this date. USFBL is making necessary arrangements to implement the provisions of the scheme," it said.
The RBI said that the scheme envisages takeover of assets and liabilities of PMC Bank, including deposits, by the USFBL.
Recently, ChanderPurswani, PMC Depositors' Forum president, in an exclusive interaction with Bizz Buzz here, said that "the issue of the crisis-ridden PMC Bank is likely to be resolved shortly as the final scheme of amalgamation will be announced with Unity Small Finance Bank (USFB)."
It may be recalled that the Forum made several attempts to bring demands of depositors to government's notice.
The delegation wanted that the forthcoming resolution needs to be absolutely prompt considering that PMC depositors are losing their money with each passing day and have already lost Rs1,000 crore due to bank expenses/salary expenses/administrator salary and other operational costs so far.
A delegation of the Forum called on the Union Minister of State (MoS) for Finance, Dr Bhagwat Krishanrao Karad, during his Mumbai visit on January 21.
The minister told the delegation that the matter has already beentaken up at the Cabinet level and has been discussed in the ministry and then it would be resolved shortly as he is positive on the same. Prior to it, the delegation had a meeting with Ministry of Financeofficials along with Karad on the issue at his office in North Blockin New Delhi on January 18.
"We have explained to the Ministry of Finance, Shri Karad, and his teamon our objections and suggestions submitted to them. We have once again reiterated our demand to amend the amalgamation draft scheme to reduce the tenure and pay interest to all the depositors," Purswani said.
Earlier, the delegation had called on the minister at Aurangabad on January 15.The depositors of PMC Bank want the government to reduce the tenure of amalgamation scheme of 10 years to a maximum of three years and the interest to be paid to them at the currently existing rate of interest and the cut-off date at par with the new depositors of USFB. The delegation has also suggested that the government should offer another package as deemed fit as a temporary interest-free loan to USFB, similar to the one being given by DICGC to USFB.
The delegation discussed the amalgamation draft scheme as announced by the Reserve Bank of India (RBI) on PMC with USFB.
