The resolution process for Punjab and Maharashtra Co-operative (PMC) Bank is at an advanced stage, a senior Reserve Bank of India (RBI) official said on Friday.

The RBI is examining an application filed by Centrum Financial Services and fintech startup BharatPe for a licence to set up a small finance bank and take over the scam-hit PMC Bank.

“Centrum and its partner BharatPe have submitted their application for licence and is at an advanced stage of consideration. Once that final licence is approved, we will very shortly be proceeding ahead with the draft scheme and getting the requisite approvals. So, it is in an advanced stage,” said RBI deputy governor M Rajeshwar Rao said on Friday. 

In June, RBI had given in-principle approval to a consortium set up by Centrum Financial Services and BharatPe to acquire the Mumbai-based co-operative bank.

As per the terms of the approval, the Centrum-BharatPe consortium was to operationalise a small finance bank within 120 days. In June, Centrum Group executive chairman Jaspal Bindra had said the RBI would prepare and submit the relevant notification only after the bank became operational. 

In September 2019, the RBI had superseded the board of directors of PMC Bank, placed it under an administrator and capped withdrawals from the scam-hit bank. 

In November 2020, the RBI called for bids to take over the bank.