InvestorQ : Why has the RBI again extended the ban on PMC Bank and what happens to the depositors now?
Chandralekha Desai made post

Why has the RBI again extended the ban on PMC Bank and what happens to the depositors now?

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NISHA Nayak answered.
6 months ago
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Even as Centrum Financial Services has been preparing to take over PMC Bank via the SFB route, the RBI extended the restrictions on PMC Bank from July 1, 2021 to December 31, 2021. This factors in the time required for the completion of reconstruction of PMC Bank post its take over by the SFB floated by Centrum Financial. It looks like the depositors of PMC will now have to wait for more than 2 full years before than can access their deposits.

RBI has already approved the proposal from Centrum Financial Services and BharatPe to take over PMC Bank subject to the condition that they do it through the SFB route. This continuation of ban will allow for a smooth takeover. It may be recollected that back in Sep-19, RBI had imposed severe curbs on PMC Bank, including on cash withdrawals. While cash withdrawals were capped at Rs.1,000 per account, it is now scaled to Rs.1 lakh per account.

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