The Reserve Bank of India (RBI) on Tuesday issued a Small Finance Bank (SFB) licence to the consortium of Centrum Financial Services Ltd (Centrum) and Resilient Innovations Pvt Ltd (BharatPe).
The development is likely to clear the decks for the merger of PMC Bank with the SFB. In September 2019, the RBI had superseded the board of PMC Bank and imposed various regulatory restrictions after financial irregularities came to light.
In June this year, it granted an in-principle approval to the Centrum BharatPe combine to acquire the cooperative bank through a merger with the small finance bank.
Speaking to reporters at the customary post monetary policy press conference, RBI deputy governor Rajeshwar Rao said once the final licence for the SFB is approved, the RBI will proceed with the scheme of amalgamation and obtaining the approvals.
While the new SFB has been incorporated as ‘Unity Small Finance Bank’, a statement from the Centrum group said the proposed business model is one of collaboration and open architecture that will unite all its stakeholders to deliver a seamless digital experience.
“We are delighted to receive the license and excited to partner with BharatPe to create this new age bank, with a strong team. We aspire to be India’s first digital bank,’’ Jaspal Bindra, executive chairman, Centrum Group, said.
