- January 16, 2022
- Posted by: Bastion team
- Category: World News
The RBI in December extended the restrictions on Punjab and Maharashtra Cooperative (PMC) Bank for another three months till the end of March 2022, as all necessary process on the draft scheme for the takeover was not complete.
As per the Banking Regulation Act, the draft scheme of amalgamation is required to be placed before the government for its sanction and the Centre may sanction the scheme without any modifications or with such modifications as it may consider necessary.
The scheme as sanctioned by the government would come into force on such date as they may specify, as per the Act.
The Reserve Bank of India (RBI) had prepared a draft scheme of amalgamation and the same was placed in the public domain on November 22 as part of seeking suggestions and objections, if any, from members, depositors and other creditors of PMC Bank and Delhi-based USFB. The deadline for submitting the comments was till December 10.
In September 2019, the RBI had superseded the board of PMC Bank and placed it under regulatory restrictions, including putting a cap on withdrawals by its customers, after detection of…