The three investors that have submitted their final bids fpr PMC are not commercial banks. Among the three, one is a non-banking financial company. Another distinctive feature of the revival is that PMC may lose its cooperative bank characteristic after its reconstruction. The mechanism to revive troubled lender Punjab and Maharashtra Cooperative (PMC) Bank having entered the last leg with the deadline for a final offer from prospective suitors expiring on Monday, the Reserve Bank of India (RBI) is devising a three-pronged approach for a reconstruction of the multi-state cooperative bank. If the revival formula works as planned, it will be the first time in recent years that the Deposit Insurance and Credit Guarantee Corporation (DICGC) will have been roped in for the revival of a stressed bank. According to highly-placed central banking sources, DICGC will offer the bank liquidity support in the form of loans. It will be liable to pay the claim under two circumstances – one, when a bank is liquidated; and two, when a bank is reconstructed or merged with another bank. The main objective of DICGC is to insure deposits and guaranteeing of credit facilities. The actuarial liability for the Deposit Insurance Fund (DIF) of… Read full this story
- Bankers give full marks to RBI Governor, as he injects banks with liquidity to spread the credit
- Tough times don’t last, tough institutions do: RBI Governor
- RBI should give clear order to stop loan recovery: Ajit Pawar
- What should be your debt mutual fund strategy after the surprise RBI rate cut?
- Axis Bank will do whatever it takes to support corporate bond market: Amitabh Chaudhry
- Factbox - RBI cuts rates, takes steps to counter economic impact of coronavirus
- From rate cuts to liquidity measures, RBI goes all guns blazing: 8 key takeaways from RBI policy
- RBI cuts repo rate by 75 bps to 4.40% to mitigate Covid-19 impact
- Commercial banks, NBFC permitted to allow 3 month moratorium on loans: RBI
- RBI cuts repo rate by 75 bps to 4.40%
RBI's 3-pronged strategy to revive PMC Bank have 319 words, post on www.rediff.com at February 5, 2021. This is cached page on Vietnam Dance. If you want remove this page, please contact us.