The Reserve Bank of India (RBI) has extended restrictions on Punjab and Maharashtra Cooperative (PMC) Bank Limited, Mumbai until December 31, 2021. The existing limitations on banking activites will continue, RBI stated.
The regulator stated, "Taking into account the time required for completion of various activities involved in the process, it is considered necessary to extend the aforesaid directions."
As per the last extension, the restrictions was until June 30, 2021. RBI in its statement said, "...for the information of the public that the validity of the aforesaid directive dated September 23, 2019, as modified from time to time, has been extended for a further period from July 1, 2021, to December 31, 2021, subject to review."
The PMC Bank was placed under all-inclusive directions under sub-section (1) of section 35-A read with section 56 of the Banking Regulation Act, 1949.
Meanwhile, recently in response to the Expression of Interest (EOI) floated by PMC Bank for its reconstruction, certain proposals were received.
After careful consideration, the proposal from Centrum Financial Services Ltd. (CFSL) along with Resilient Innovation Pvt. Ltd. was accpeted by the regulator. The regulator had granted 'in-principle' approval, with validity of 120 days, was given to CFSL to set up a small finance bank (SFB). This was under the general guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector.
