Reserve Bank of India (RBI) has given in principle approval to facilitate the takeover of PMC bank by Centrum-BharatPe.
The central bank has given in principle approval to Centrum to set up a small finance bank which was regulatory requirement for the takeover of PMC by the consortium. Centrum Group is owned by Jaspal Bindra, a former Standard Chartered honcho. For BharatPe, this will reduce the cost of capital. It has been wanting to lend on its own, instead of doing it only through its partner NBFC.
This comes as a relief for PMC customers that still have to wait awhile for the current caps to be removed on deposits and other businesses.