The Deposit Insurance and Credit Guarantee Corporation (DICGC) on Thursday said it has settled the main claim aggregating ₹3,791.55 crore of Punjab & Maharashtra Cooperative Bank Ltd (PMCBL) for 8,47,506 traceable depositors.

DICGC asked depositors of the erstwhile PMCBL (transferor bank) to contact the transferee bank (Unity Small Finance Bank) for receipt of their claim amount.

Scam-hit PMCBL was merged with Unity SFB with effect from January 25, 2022 (the appointed date for the merger), as per a scheme of amalgamation.

Chander Purswani, President, PMC Depositors’ Forum, said the settlement of the deposit insurance amount will come as a relief for PMCBL depositors.

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The depositors had a tough time during the entire pandemic period as they could not withdraw their money on account of PMCBL being placed under RBI Directions, he added.

Under the scheme of amalgamation, Unity SFB will pay the amount it receives from DICGC to all the eligible retail depositors of PMCBL (transferor bank), which would be an amount equal to the balance in their deposit accounts or ₹5 lakh, whichever is less.

Depositors with deposits over ₹5 lakh will get their monies, depending on their balances, over 10 years from the appointed date.

No interest on any of the interest bearing deposits with the transferor bank will accrue after March 31, 2021 for a period of five years from the appointed date.

Thereafter, simple interest at the rate of 2.75 per cent per annum will be paid at the end of each year for the amounts remaining outstanding which will be payable from the date after five years from the appointed date.

As at March-end 2021, PMC Bank had deposits aggregating ₹10,535 crore. Of this, about 70 per cent are retail deposits and the rest are institutional deposits, including other urban co-operative banks (216) and co-operative societies (1,750).

PMC Bank got into trouble in 2019 due its high exposure to real estate company HDIL.

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