Capital Area Bank Becomes First Bank to Get Small Finance Bank License from Rbi [ Current News (Concise) ]
Capital Local Area Bank (CLAB) Limited of Jalandhar has becomes the first financial entity in India who get Small Financial Bank License by the Reserve Bank of India (RBI). CLAB Ltd will be largest local bank in the country with total 44 branches in five districts of Punjab.
And now it will begin its operations from April 13, 2016 as a small finance bank and mainly focus on the northern region for first five years of operations.
In September 2015 10 entities has been granted by RBI including CLAB ltd to set up small finance banks to provide basic banking services to small farmers and micro industries.
This 10 small Finance Banks are:
- Au Financiers in Jaipur
- Capital Local Area Bank in Jalandhar
- Disha Microfin in Ahmedabad
- Equitas Holdings in Chennai
- ESAF Microfinance and Investment in Chennai
- Janalaksmi Financial Service in Bengaluru
- RGVN (Northeast Microfinance in Guwahati
- Survoday Micro Finance in Navi Mumbai
- Ujjavan Financial Services in Bengaluru
- Utkarsh Micro Finance in Varanasi
The in-principle sanction had allowed these entities comply with the strategies on Small Finance Banks and the approval will be valid for 18 months.
About Small Finance Bank:
The small finance bank includes basic banking activities of acceptance of deposits and lending to unserved and underserved to further financial inclusion in the country.
It will provide facilities of banking to the unbanked sections and thereby boosting saving habits.
It mainly includes high technology-low cost operations entities like:
- small business units
- marginal farmers
- unorganized sector
- Published on: March 8, 2016