CURRENT AFFAIRS

Detailed explanation-1: -RBI had imposed restrictions on the withdrawal of deposits from PMC Bank. The Reserve Bank of India (RBI) on December 28 extended the validity period of its directions imposed on Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) from January 1, 2022, to March 31, 2022.

Detailed explanation-2: -"Further action with regard to sanction of the scheme is under process, ” RBI said on Tuesday as it extended the restrictions for another three months till March 31, 2022, subject to review.

Detailed explanation-3: -In a not-so-common regulatory move, the RBI, in September 2019, superseded the board of the PMC Bank and imposed various restrictions, including capping withdrawals by customers, after financial irregularities at the lender came to light.

Detailed explanation-4: -(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-5: -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.