The Punjab and Maharashtra Co-operative Bank is merged with Unity Small Finance Bank from today, the Reserve Bank Of India (RBI) notified in a press release on Tuesday.
“The amalgamation will come into force with effect from the date of the notification of the scheme i.e. January 25, 2022,” the release said.
“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 added.
According to the press release, the scheme of amalgamation notified envisages taking over of all the assets and liabilities of PMC Bank, including deposits, by the USFBL in terms of the provisions of the scheme.
Notably, in 2019, RBI had placed curbs on the PMC bank, which was founded in 1984 and has 137 branches, owing to fraudulent activities. The investigations by Enforcement Directorate revealed that the management of the bank colluded with HDIL promoters to withdraw loans worth Rs 8,383 crore, despite being non-payment by the company. Several arrests have been made in the case since then.
