Reserve Bank of India (RBI)
The Reserve Bank of India (RBI) on Tuesday issued a Small Finance Bank (SFB) license to a consortium of Central Financial Services Limited and BharatPe. A new bank license has been issued after a gap of about 6 years, Centrum said in a regulatory filing. We thank RBI for the confidence shown in the capabilities of Centrum and BharatPe.
The name of the new small finance bank will be Unity Small Finance Bank. The name Unity holds tremendous significance for both Centrum and BharatPe in many ways. This is the first time that two partners are coming together equally to form a bank. The MSME and micro finance businesses of Centrum will be merged with Unity Small Finance Bank, the statement said.
Jaspal Bindra, Executive Chairman, Centrum Group said, “We are delighted to have received the license and are excited to partner with BharatPe to build this new age bank with a strong team. We aspire to be the first digital bank of India.
India’s first truly digital bank to be built
Ashneer Grover, Co-Founder and Managing Director, BharatPe said, “I would like to thank RBI for handing over the integration of BharatPe and Centrum with the SFB license. We will work tirelessly and smartly to seize this opportunity and build India’s first truly digital bank.
Centrum-BharatPe acquired this bank
Let us tell you that Centrum-BharatPe has acquired crisis-hit cooperative bank Punjab and Maharashtra Cooperative Bank (PMC Bank). Centrum and digital payment service provider startup company BharatPe are going to invest Rs 1,800 crore in this after getting approval from RBI.
Centrum Financial Services had proposed to acquire PMC Bank and form a small bank on February 1, 2021. PMC Bank was functioning under the administration of the Reserve Bank since September 2019. More than Rs 10,723 crore of depositors’ money is still stuck in this bank. Similarly, a total of Rs 6,500 crore of the bank’s loans are stuck in recovery, which have been declared as NPA.
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Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.