The Reserve Financial institution of India (RBI) has appointed former comptroller and auditor common (CAG) chief Vinod Rai because the unbiased chairman of the Unity Small Finance Financial institution (USFB), in accordance with an official assertion.
“Rai will add vital worth to the board of Unity Financial institution. Furthermore, his huge expertise as a board Member in a number of PSU and personal banks will assist in constructing a robust basis and shaping the long run technique at Unity Financial institution,” Unity Financial institution stated in its assertion.
Aside from Vinod Rai, USFB board contains former RBI official Sandip Ghose, former Syndicate Financial institution CMD Basant Seth and former RBL Financial institution chairman Subhash Kutte.
USFB, a three way partnership between Centrum Group and Bharatpe, has commenced operations as a small finance financial institution with impact from November 1, 2021.
The proposed merger of debt-ridden Punjab and Maharashtra Cooperative Financial institution with USFB is being examined and the method of amalgamation will begin after the federal government approval, information company PTI reported.
Numerous features of the scheme of amalgamation have been examined and the federal government would quickly ship its solutions, if any, to the RBI.
The RBI had ready a draft scheme of amalgamation and the identical was positioned within the public area on November 22 as a part of searching for solutions and objections, if any, from members, depositors and different collectors of PMC Financial institution and Delhi-based USFB. The deadline for submitting the feedback was until December 10.
The draft scheme of amalgamation envisages a takeover of the property and liabilities of PMC Financial institution, together with deposits, by USFB, thus giving a higher diploma of safety for the depositors, the RBI had stated in November final yr.
It could be seen that USFB has been arrange with capital of about ₹1,100 crore as towards regulatory requirement of ₹200 crore for organising of a small finance financial institution.
Supply: Live Mint