Fasts unto death, more than a hundred suicides, sit-in protests, the 9 lakh-odd depositors of the Punjab and Maharashtra Cooperative Bank have gone through a lot since the RBI fired the bank’s management in 2019 over grave irregularities. The silver lining came this June when the central bank announced that it has given a provisional nod to financial services firm Centrum to take over PMC Bank. Depositors are now hopeful that they will finally be able to withdraw their money parked with the bank, but there are many stages to be cleared before that happens.

How Did Centrum Enter The Picture?

Centrum Financial Services Ltd is not a bank but a non-banking financial services (NBFC) firm. What RBI has done is to extend an “in-principle” approval to Centrum to set up a small finance bank that would eventually take over the PMC Bank. But the actual licence for starting banking operations will follow only when the central bank is “satisfied that the…

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