Unity Small Finance Bank pays Rs 3,800 crore to 8.5 lakh PMC Bank depositors – Economic Times

Unity Small Finance Bank Thursday paid around Rs 3,800 crore to depositors of the scam-hit Punjab and Maharashtra Co-operative Bank (PMC Bank) after the Deposit Insurance and Credit Guarantee Corporation (DICGC) had certified about 850,000 such valid accounts earlier in the day.

This will bring cheers for the depositors just ahead of Gudi Padva, the Marathi new year.

“Unity SFB received from DICGC a certified list of erstwhile PMC Bank depositors who are eligible to receive up to Rs5 lakh of their deposits, post banking hours today,” Jaspal Bindra, executive chairman, Centrum Group told ET.

A depositor received her money subject to a maximum ceiling of Rs5 lakh as per the insurance cover. This means, if the total deposit outstanding is less than the benchmark size, the saver receives the full money back.

Unity SFB has instantly credited the deposit sum in all those depositors’ bank accounts with their holders sending confirmation of their credit balance on the Unity Bank App.

“To help immediately fund these accounts Unity SFB has taken cash assistance from DICGC which it will repay at a future date,” said Bindra.

The bank has taken a loan of over Rs3,700 crore, which will be repaid over a period of time.

Unity SFB will be a primarily digital bank where new shareholders have committed capital of over Rs3,000 crore through cash and warrants. The capital will be used to build a base for the bank.

Earlier in October, the Reserve Bank of India (RBI) issued a small finance bank licence to the consortium of Centrum Financial Services, and Resilient Innovation (RIPL) which has a flagship digital payments platform called BharatPe. This was the first time after a gap of nearly six years that the central bank issued a new bank licence.

Unity SFB was born out of the rescue of the tainted PMC Bank, whose erstwhile promoters had siphoned off funds, missing their obligations to depositors. Centrum now owns 51% of Unity and the remaining is held by RIPL.

Such an amalgamation included the depositors’ refund plan with interest rate caps and tenor limits.

The bank board will have five independent directors including Vinod Rai, the former comptroller and auditor general of India. He was appointed as the independent chairman of Unity SFB.

Besides, the bank appointed Sandip Ghose, an RBI veteran; Basant Seth, the former chairman and managing director of erstwhile Syndicate Bank; Subhash Kutte, former chairman of RBL Bank; and Renu Basu from the Indian Hotels Company to its board.

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