Centrum-BharatPe Consortium Will Set Up Bank Within 120 Days

Reserve Bank of India has approval to Centrum Financial Services Ltd to form a small finance bank

With the Reserve Bank of India having given a period of 120 days to Centrum Financial Services Ltd (CFSL) to set up a small finance bank, which will eventually take over the troubled Punjab and Maharashtra Cooperative Bank (PMC), the consortium has said that the timeline is “workable” and it hopes to complete the process sooner than that.

Centrum Capital, the holding entity for CFSL, and its partner BharatPe, a payments system company, will infuse Rs 1,800 crore into the small finance bank.

Centrum Capital is the holding entity for CFSL and its partner is BharatPe, a payments system company.

Talking to NDTV, BharatPe’s Group President Suhail Sameer said, “the timelines are workable and we hope to sort of complete the process sooner.”

Mr Sameer further informed that during the 120-day period while CFSL will set up a small finance bank, the RBI simultaneously will chart out a reconstruction plan for PMC Bank.

“Once we become operational, they (RBI) will take a decision to merge PMC with the small finance bank,” he informed.

Mr Sameer said that for them and the RBI, the interest of the small depositors, who had lost their lives’ savings in the PMC Bank scam, is paramount.

“They have waited for so long, I will urge the depositors to sit tight for some more time and a meaningful outcome will come out of it soon,” he said.