Centrum, BharatPe to take over PMC Bank and re-launch it as Small Finance Bank
- The Reserve Bank of India has given in-principle approval to Centrum Financial Services Limited to set up a small finance bank.
- Centrum Financial Services Limited will take over the Punjab & Maharashtra Co-operative Bank Ltd., Mumbai (PMC) and re-launch it as a Small Finance Bank.
- Resilient Innovations Private Ltd (BharatPe) and Centrum Financial Services Limited both will hold 50% stake in this new Small Finance Bank that will be formed after taking over Punjab & Maharashtra Co-operative Bank.
- It must be noted that RBI had placed certain restrictions on Punjab & Maharashtra Co-operative Bank., and in March 2021, the RBI had further extended the restrictions on the PMC Bank till June 30.
- Centrum Financial Services Ltd (Centrum) is an NBFC arm of the Centrum Group.
Points to remember:
- Punjab & Maharashtra Co-operative Bank Ltd will be converted to?- Small Finance Bank
- Who will take over Punjab & Maharashtra Co-operative Bank Ltd.?- Centrum Financial Services Limited and BharatPe
- Stake of Centrum Financial Services Limited and BharatPe in the new Small Finance Bank?- both 50%
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