By Malvika Gurung
Investing.com -- The Government approved merging the fraud-hit lender Punjab and Maharashtra Co-operative (PMC) Bank with the small finance bank Unity Small Finance Bank Limited, a joint venture between BharatPe and Centrum Financial Services Ltd.
As per RBI’s notification, all of PMC Bank’s assets and liabilities, along with deposits will be transferred to the small finance bank USFBL, under the merger scheme.
The amalgamation between the two companies will come into effect from the date of notification on January 25, as all of PMC Bank’s branches too will function as USFBL’s branches.
At first, the small finance bank will pay the insurance money received from Deposit Insurance and Credit Guarantee Corporation to all the eligible depositors of PMC Bank at a ceiling of Rs lakh, to their deposit accounts.
Later, the retail depositors will be able to extract the balance in a phased manner, withdrawing Rs 50,000 at end of the first year, Rs 50,000 after two years, Rs 1 lakh at the end of 3 years, Rs 2.5 lakh at the end of four years and Rs 5.5 lakh at the end of five years, as per a CNBC TV-18 report.
Over the next 10 years, the depositors will be able to withdraw the entire amount.
Interest at a 10% rate will be paid every year for the outstanding amounts.
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