The Reserve Bank of India (RBI) on Friday extended the restrictions on Punjab and Maharashtra Cooperative Bank (PMC Bank) further from July 1, 2021 to December 31, 2021. The RBI said that the directions have been extended taking into account the time required for completion of reconstruction of PMC Bank.
The RBI said that after careful consideration, the proposal from Centrum Financial Services Ltd (CFSL) along with Resilient Innovation Pvt Ltd (BharatPe) has been found to be prima facie feasible.
Taking into account the time required for completion of various activities involved in the process, it is considered necessary to extend the aforesaid Directions, it said.
Accordingly, it is hereby notified for the information of the public that the validity of the aforesaid Directive, 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 RBI added. The directions were last extended from March 26, 2021 up to June 30, 2021.
Last week, the RBI cleared the decks for the takeover of PMC Bank by a consortium of non-bank lender Centrum Financial Services and fintech startup BharatPe. It granted an in-principle approval to Centrum to set up a small finance bank under on-tap licensing norms.
In September 2019, RBI put severe curbs on PMC Bank, including on cash withdrawals, amid a probe into accounting lapses. Cash withdrawals were initially capped at ₹1,000 per account for six months, but gradually relaxed to ₹100,000 in June last year.