PMC Bank receives interest from 4 suitors; RBI extends restrictions on bank till March 31

The Reserve Bank of India (RBI) on Friday has extended restrictions on troubled Punjab & Maharashtra Co-operative Bank (PMC Bank) by three more months until March 31, 2021.

In a notice on its website on Friday, the RBI said the co-operative bank had received four expressions of interest (EOI) from eligible investors for investment/ equity participation for its reconstruction. The bank had set December 15, 2020 as the last date for submission of EoIs.

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"The bank has informed Reserve Bank that in response to EoI, four proposals have been received. These proposals will be examined by the bank with regard to their viability and feasibility taking into account the best interest of the depositors," RBI said in a notice.

"To undertake this process, the bank would need some more time," RBI said, adding "for the information of the public that the validity of the aforesaid Directive dated September 23, 2019, as modified from time to time, has been extended for a further period from December 23, 2020 to March 31, 2021, subject to review."

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PMC Bank was placed under restrictions on September 23, 2019 after a money laundering fraud came to light.