PMC bank news again trending in social media and news channels. Customers money is safe now and all settled now. Do you want to recap the whole story of this bank then read this post till end.
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What Is PMC Bank? (Full Form & Background)
PMC Bank stands for Punjab and Maharashtra Co-operative Bank.
Founded in 1984, it served multiple states like Maharashtra, Goa, Delhi, Gujarat, and Karnataka.
In 2019, the Reserve Bank of India (RBI) imposed restrictions on withdrawals due to fraud involving HDIL loans. Public trust collapsed amid withdrawal caps and operational chaos.PMC Bank stands for Punjab and Maharashtra Co-operative Bank.
Founded in 1984, it served multiple states like Maharashtra, Goa, Delhi, Gujarat, and Karnataka.
In 2019, the Reserve Bank of India (RBI) imposed restrictions on withdrawals due to fraud involving HDIL loans. Public trust collapsed amid withdrawal caps and operational chaos.
PMC Bank Collapse News: What Happened?
When the loan irregularities became public, depositors could only withdraw ₹1,000 initially—even as low as ₹50,000 later.
RBI and courts got involved. Years passed as the bank remained dysfunctional.
Finally, in January 2022, PMC Bank officially merged with Unity Small Finance Bank, bringing an end to the crisis and reviving operations under a new, regulated entity.
PMC Bank Merged with Which Bank?
PMC Bank merged with Unity Small Finance Bank (Unity SFB), created by a joint venture between Centrum Financial Services (51%) and BharatPe’s RIPL (49%).
Unity SFB took over PMC’s operations, helping restore services gradually.
Unity Small Finance Bank and PMC Bank News
After receiving RBI approval, Unity SFB began operations in late 2021.
PMC’s 137 branches became Unity branches after the merger, ensuring depositors regained access to funds under a stable structure.
The bank offers modern digital services while honoring PMC’s legacy clientele.
PMC Bank Owner Name and History
PMC was owned by a cooperative society and functioned independently until the financial irregularities surfaced.
Its downfall brought national attention due to the withdrawal crisis and forced regulatory intervention.
The bank itself had no single “owner”—it was a multi-state cooperative until its rescue via merger.
Ashneer Grover Relationship with PMC Bank
Ashneer Grover, co-founder of BharatPe, has often mentioned the PMC takeover as a bold strategy.
In reality, he does not hold an official role in Unity SFB. Regulatory norms requested the bank remain independent.
While his firm (RIPL/BharatPe) is a stakeholder, Grover himself is not part of Unity SFB’s leadership.Ashneer Grover, co-founder of BharatPe, has often mentioned the PMC takeover as a bold strategy.
In reality, he does not hold an official role in Unity SFB. Regulatory norms requested the bank remain independent.
While his firm (RIPL/BharatPe) is a stakeholder, Grover himself is not part of Unity SFB’s leadership.
Who Is Providing PMC Bank Customer Service Now?
Post-merger, all customer service and operations are managed by Unity SFB.
If you held an account with PMC, branch visits or digital banking via Unity now serves your banking needs.
Unity offers mobile banking, net banking, loan services, deposits, and standard support across legacy branches.
What Happened to Depositors
Restored Access: After years of uncertainty, depositors now have access via a regulated SFB.
Safety & Insurance: Unity SFB is RBI-regulated and provides standard deposit insurance coverage.
Continuity: Your account history, KYC, and even passbooks continued under the Unity umbrella.
PMC Bank Fraud Case: A Brief Overview
The PMC Bank fraud case came to light in 2019, shaking the Indian banking sector. Punjab and Maharashtra Co-operative Bank was found guilty of hiding non-performing assets linked to the real estate company HDIL (Housing Development and Infrastructure Limited). Top officials of PMC allegedly created over 21,000 fake accounts to mask loans worth more than ₹6,500 crore given to HDIL.
This malpractice led to severe financial stress, forcing the Reserve Bank of India (RBI) to impose withdrawal restrictions on customers. Many depositors faced hardships as their lifetime savings were locked. The case highlighted loopholes in cooperative bank governance and risk management.
In 2022, PMC Bank was merged with Unity Small Finance Bank, offering some relief to depositors. The fraud remains one of India’s most significant banking scandals, emphasizing the need for transparency, strict audits, and stronger regulatory oversight in cooperative banking.