Mumbai: The Reserve Bank of India (RBI) has today decided to grant “in-principle” approval to Centrum Financial Services Limited to set up a small finance bank.
“ The RBI would consider granting a licence for commencement of banking business under Section 22 (1) of the Banking Regulation Act, 1949, on being satisfied that the applicant has complied with the requisite conditions laid down by RBI as part of “in-principle” approval” said RBI
“This “in-principle” approval has been accorded in specific pursuance to the Centrum Financial Services Limited’s offer dated February 1, 2021 in response to the Expression of Interest notification dated November 3, 2020 published by the Punjab & Maharashtra Co-operative Bank Ltd., Mumbai” RBI added.
The in-principle approval has been granted under general “Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector” issued by the RBI on December 5, 2019. Under the guidelines, the minimum paid-up voting equity capital or net worth requirement for getting small finance bank license is Rs.200 crore.
Centrum, on January 15th had applied before the RBI to set up a Small Finance Bank (SFB) as a part of revival/reconstruction of Punjab and Maharashtra Co-operative Bank Limited (PMC bank).