Business Line says the proposed amalgamation of the scam-hit Punjab and Maharashtra Co-operative (PMC) Bank with a small finance bank brings cheer to depositors of about 50-odd weak urban co-operative banks (UCBs), currently under the Reserve Bank of India’s Directions, getting back their money.
Experts say if the amalgamation happens it could become a template for rescuing other weak UCBs in the country. It is worth mentioning once a UCB is placed under Directions, deposit withdrawal is capped.
It is said the development related to the PMC Bank may encourage small finance banks to take over distressed UCBs and expand their area of operation.
