The PMC Bank’s activities were taken over by the RBI in 2019 and withdrawals due to accounting errors were limited.
Unity Customers who kept deposits totaling up to Rs. 15 lakh were given a one-time settlement option against all future payables by Small Finance Bank, formerly known as PMC Bank. The OTS scheme provides clients the option of receiving the deposit amount immediately, albeit at a 37% discount, as opposed to having to wait for ten years.
The bank made two payments as part of the Early Encashment Scheme: the first one in July and the second one on August 13. On December 15, the following payment will be made.
“There was a great demand from a certain cross-section of people to be able to acquire liquidity against the scheme promised to them over the following few years after the merging of the bank in January. These are primarily elderly individuals who have deposits totaling more than 5 lakh with the bank “SFB promoter Jaspal Bindra remarked. It’s a voluntary program with very little money taken out. Our initial preference was for them to implement the (amalgamation) plan, “Added he.
By the plan for combining PMC Bank and Unity Small Finance Bank, depositors of PMC Bank will receive their money over 3 to 10 years, with zero interest paid on deposits for five years following the end of March 2021, and then a maximum of 2.75% interest on unpaid deposits. The qualifying depositors would get payments from Unity SFB of up to 5 lakh or less that were received from DICGC. By January 2023, it would pay an additional $50,000 over the payment previously made, followed by $50,000 by January 2024, $15,000 by January 2025, $25,000 by January 2026, and $55,000 at the end of five years (January 2027).
Nevertheless, despite the substantial interest in the OTS, there was little demand for deposit withdrawals, and the bank plans to close it after December of this year, according to Bindra.
The amount still falls below 100 crores. Not much demand exists. The required payment is 2000 crore over the subsequent five years. The majority of people are willing to wait until the due date rather than pay it in advance. Because there was such a great deal of interest, we just responded to the customers. We can go back and declare that we are suspending it since the takeoff itself is not very long.
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