The Reserve Bank of India (RBI) has granted license to Centrum Financial Services and BharatPe consortium to set up a small finance bank (SFB), four months after it showed interest in handling the crisis-hit Punjab and Maharashtra Co-operative Bank (PMC). )
The central bank has given the license to the consortium after first giving in-principle approval to set up SFBs in June this year.
Mumbai-based cooperative lender PMC Bank was under sanctions for more than two years following a fraud of Rs 7,000 crore.
The consortium, in a joint statement, confirmed that they have received RBI’s final approval and this is the first time in six years that RBI has granted a banking license to an entity.
Earlier on Tuesday, BharatPe announced that former State Bank of India (SBI) chief Rajnish Kumar is joining its board as chairman and as a mentor overseeing the fintech company’s efforts to set up an SFB. will act as
The new SFB is incorporated as “Unity Small Finance Bank” and the business model is “one of collaboration and open architecture”, united to provide a seamless digital experience to all its stakeholders, the statement said. does.
The details regarding the amalgamation of PMC with the new SFB are not yet known.
Centrum’s micro, small and medium as well as micro finance businesses will be merged into Unity Small Finance Bank, the statement said.
Jaspal Bindra, Chairman, Centrum Group said, “We are delighted to have the license and are excited to partner with BharatPe to create this new-age bank with a strong team. We aspire to be India’s first digital bank.”
Ashneer Grover, Co-Founder and Managing Director, BharatPe said, “We will work tirelessly and smartly to take advantage of this opportunity and build India’s first truly digital bank.”