NEW DELHI: Retail depositors who have more than Rs 5 lakh stuck in the Punjab and Maharashtra Cooperative (PMC) Bank will have to wait for up to 10 years to get their full amount, according to the Reserve Bank of India’s draft scheme for the acquisition of PMC Bank by Delhi-based Unity Small Finance Bank (USFB).
According to the scheme released on Monday, the depositors will get their full amount back over a period of 10 years. In the initial phase, the Bank will pay an amount insured under DICGC of up to Rs 5 lakh to depositors.
After that, at the end of two years, the Bank will pay up to Rs 50,000, and up to Rs 1 lakh at the end of three years, Rs 3 lakh at the end of four years, Rs 5.5 lakh at the end of five years and the full amount will be paid after ten years.
Also, the draft suggests that the interest on any of the interest bearing deposits with the Bank will not accrue after March 31, 2021. The Reserve Bank said it would receive suggestions and objections on the draft scheme till 5.00 pm on December 10. Thereafter, it will take a final view on the takeover.
“No further interest will be payable on the interest bearing deposits of the transferor bank for a period of five years from the appointed date. In respect of balances in any current account or any other non-interest bearing account, no interest shall be payable to the account holders, according to the scheme,” the draft said.
The USFB, a joint venture between Centrum Group and Bharatpe, is being set up with a capital of about Rs 1,100 crore as against the regulatory requirement of Rs 200 crore for the setting up of such a bank, as per the guidelines for on-tap licensing.