In response to the Expression of Interest (EOI) floated by PMC Bank for its reconstruction, certain proposals were received, requiring the RBI to extend the Direction on the UCB for a further period from July 1, 2021 to December 31, 2021, subject to review.
In a release RBI says “ After careful consideration, the proposal from Centrum Financial Service Ltd. (CFSL) along with Resilient Innovation Pvt. Ltd. has been found to be prima facie feasible.”
Accordingly, in specific pursuance to their offer dated February 1, 2021 in response to the EOI, RBI has, on June 18, 2021, granted “in-principle” approval, valid for 120 days, to CFSL to set up a small finance bank (SFB) under the general Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector dated December 5, 2019, reads the release.
All other terms and conditions of the Directives under reference shall remain unchanged. Punjab and Maharashtra Cooperative (PMC) Bank was first placed under Direction on September 23, 2019, in the interest of depositor protection. The directions were last extended vide Directive dated March 26, 2021 up to June 30, 2021.
