NCUI hails merger of PMC BANK with Unity SFB; bats for security of depositors' money

Welcoming the merger of debt-ridden Punjab and Maharashtra Cooperative (PMC) Bank with Unity Small Finance Bank (Unity SFB), cooperative body NCUI on Friday said that it needs to be ensured that depositors’ money is secure.

On January 25, the union finance ministry had approved the merger of PMC Bank with Unity SFB, protecting it from liquidation and bringing relief to all stakeholders. In a statement, National Cooperative Union of India (NCUI) President Dileep Sanghani welcomed the merger of PMC Bank with Unity Small Finance Bank.

However, he said that “it has to be ensured that the depositors’ money is secure, and they are able to get back the money,” an official statement said. Former NCUI President and Cooperative Bank of India Chairman G H Amin also welcomed the move saying, “This is the first cooperative bank which has been merged with a private bank. Now the money of the depositors, who are from both the cooperative and private sector, is safe and secure.”

National Federation of State Cooperative Banks (NAFSCOB) Managing Director and International Cooperative Banking Association President Bhima Subrahmanyam said that the RBI draft scheme for merger of PMC bank with bigger Urban Cooperative Banks would have been more desirable.

He further said that the draft RBI Scheme envisages settlement of all dues of depositors in a phased manner, which is not correct.

“All the depositors should have been helped with their deposits even at the time of finalisation of Draft Scheme,” he said, adding that the guidelines for amalgamation of banks according to Banking Regulation Act, 2020 is not followed.