RBI Clears Takeover of PMC Bank by Centrum

The Reserve Bank of India on Friday announced that it has given an 'in-principle' nod to Centrum Financial Services to set up a small finance bank (SFB). This “in-principle" approval has been accorded in specific pursuance to the Centrum Financial Services Limited’s offer in response to the Expression of Interest notification dated November 3, 2020 published by the Punjab & Maharashtra Co-operative (PMC) Bank. The RBI has cleared the takeover of PMC Bank by Centrum, allowing it an in-principle approval to set up a small finance bank. RBI in September 2019 had put severe curbs on PMC Bank, including on cash withdrawals, amid a probe into accounting lapses. Cash withdrawals were initially capped at ?1,000 per account for six months, but gradually relaxed to ?100,000 in June last year. ''The Reserve Bank of India (RBI) has today decided to grant “in-principle" approval to Centrum Financial Services Limited (the applicant) to set up a small finance bank under general “Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector" dated December 5, 2019,'' the central bank said.