Jalandhar-based Capital Small Finance Bank Ltd, India’s first small finance bank, has commenced operations. The bank kicked off operations with ten branches.
Capital Small Finance Bankhas been set up by converting the erstwhile Capital Local Area Bank Ltd. It was one of the 10 applicants to be given in-principle approval for setting up SFBs as announced by the Reserve Bank in its press release dated September 16, 2015.
Ten selected applicants include
- Au Financiers (Jaipur),
- Capital Local Area Bank (Jalandhar),
- Disha Microfin (Ahmedabad),
- Equitas Holdings (Chennai),
- ESAF Microfinance and Investments (Chennai),
- Janalakshmi Financial Services (Bengaluru),
- RGVN (Northeast) Microfinance (Guwahati),
- Suryoday Micro Finance (Navi Mumbai),
- Ujjivan Financial Services (Bengaluru) and
- Utkarsh Micro Finance (Varanasi).
The small finance bank will primarily undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities. There won’t be any restrictions in the area of operations of small finance banks.
The minimum paid-up equity capital for small finance banks shall be Rs 100 crore. The promoter’s minimum initial contribution to the paid-up equity capital of such a small finance bank should at least be 40 per cent and gradually brought down to 26 per cent within 12 years from the date of commencement of business of the bank.
No comments:
Post a Comment