The Reserve Bank of India (RBI) has given “in-principle” approval to Centrum FInancial services Ltd (CFSL) to set up a small finance bank (SFB), which will take over the beleaguered Punjab and Maharashtra Cooperative Bank (PMC bank).
The “in-principle” approval has been given to Centrum in accordance with the offer it made in response to the expression of interest(EoI) to take over PMC bank, the RBI said in a statement.
According to reports, both Centrum and BharatPe will hold 50 per cent in the small finance bank and the assets and liabilities of the multistate cooperative bank will be transferred to it.
It will take 120 days for commerce operations. The amalgamation with the PMC Bank is a separate process that would involve a notification of the scheme by the government , said Bindra, executive chairman, Centrum capital.