CURRENT AFFAIRS

Detailed explanation-1: -The Reserve Bank of India (RBI) has appointed AK Dixit, former general manager at Union Bank of India, as the new administrator of Punjab and Maharashtra Cooperative (PMC) Bank.

Detailed explanation-2: -(PMC Bank) with Unity Small Finance Bank Ltd. (USFBL). The amalgamation will come into force with effect from the date of the notification of the scheme i.e. January 25, 2022. All the branches of the PMC Bank will function as branches of Unity Small Finance Bank Ltd.

Detailed explanation-3: -RBI announces draft scheme for amalgamation of PMC Bank, Unity Small Finance Bank; PMC depositors to get full amount over 10 years. The draft envisages takeover of the assets and liabilities of PMC Bank, including deposits, by USFB.

Detailed explanation-4: -What’s The Reason Behind This Crisis? The RBI has put these restrictions citing several reasons like regulatory lapses and massive under-reporting of nonperforming assets (NPAs).