Unity SFB offers 7% interest rate to PMC Bank depositors
PMC Bank depositors will receive up to ₹5 lakh by the end of March 2022
The new Unity Small Finance Bank has waved a carrot in front of retail depositors of the former Punjab and Maharashtra Co-operative (PMC) bank, urging them to park with it the claim funds they will receive and earn “a rate interest rate of 7 percent.
PMC Bank depositors will receive up to ₹5 lakh (including accrued interest until the end of March 2021) by the end of March 2022 in their savings bank accounts with Unity SFB.
Balances above ₹5 lakh will be received by depositors in phases up to January 2032. This is in line with PMC Bank’s government-approved merger program with Unity SFB.
Chander Purwani, President of the PMC Depositors Forum, said: “Once bitten, twice shy. We have already burned our fingers in PMC Bank. We suffered for 28 months as withdrawal of deposits was capped at ₹1 lakh per depositor under the instructions of Reserve Bank of India to PMC Bank.
“I think keeping money in a public sector bank, even if it offers relatively low interest rates, is a safer bet than being lured by the higher interest rates offered by the another category of banks.”
In an open letter to retail depositors at PMC Bank, Unity SFB said: “We understand your concerns and hope this resolution (via the merger) will help reduce the challenges you are facing. We remain committed to making the process of settling your deposits hassle-free.
“We will transfer your account(s) from PMC to Unity Bank with your full balance…Again, we want to assure you that we remain committed to providing your funds in a convenient way.”
To alleviate the difficulties faced by depositors of the former PMC Bank, Purswani suggested Unity SFB to set up a loan scheme for depositors with balance above ₹5 lakh.
He said the scheme is expected to allow depositors to take out loans on their fixed deposits (FDs) at a 1% markup over the prevailing savings bank deposit rate at Unity SFB. This will also help Unity SFB grow its loan portfolio against FD.
RBI had granted Centrum Financial Services Ltd (CFSL) its approval in principle to establish an SFB on June 18, 2021. This approval specifically followed CFSL’s offer of February 2021 in response to PMC Bank’s Expression of Interest (EoI) notice of November 2020 regarding its reconstruction.
Unity SFB was jointly promoted by CFSL, the small business lending arm of Centrum Group, and fintech firm Resilient Innovations Pvt Ltd (BharatPe).
All branches of PMC Bank started operating as branches of Unity SFB from January 25, 2022.
February 09, 2022