The draft scheme of amalgamation envisages the takeover of the assets and liabilities of PMC Bank, including deposits, by the Unity Small Finance Bank

The Reserve Bank of India (RBI) on November 22 came up with a draft scheme for the acquisition of Punjab and Maharashtra Cooperative (PMC) Bank by Delhi-based Unity Small Finance Bank (USFB).

The draft scheme of amalgamation envisages the takeover of the assets and liabilities of PMC Bank, including deposits, by the USFB, thus giving a greater degree of protection for the depositors, the RBI said.

The USFB is being set up with a capital of about ₹1,100 crore as against the regulatory requirement of ₹200 crore for the setting up of such a bank, as per the guidelines for on-tap licensing.

The RBI said it would receive suggestions and objections on the draft scheme till 5.00 p.m. on December 10. Thereafter, it will take a final view on the takeover.

It is to be noted that Unity Small Finance Bank Limited, a joint venture between Centrum Group and Bharatpe, has commenced operations as a small finance bank with effect from November 1, 2021.