Mumbai: RBI is issued on Tuesday a small Finance Bank (SFB) license for Centrum Financial Services Consortium (Centrum) and Tangguh Innovation (Bharatpe).
The new SFB has been included as the ‘Unity Small Finance Bank’ – the first new bank license in six years.
Previous RBI this year issued a principle approval of the consortium in the condition that they obtained the Cooperative Bank Punjab & Maharashtra (PMC) business and helped resolution.
In the first phase, the Centrum loan business (small business loans and microfinance) will be a subsulation to the bank.
It will also get some assets from Bharatpe.
Meanwhile, Bharatpe on Tuesday announced that he had appointed former SBI Chairman Rajnish Kumar as his chair.
Speaking to Toi, the executive seat of the Centrum group, Jaspal Bindra said that as a proposed bank will be digital, it will not need physical infrastructure in the form of a branch.
“We will be operational in a matter of weeks.
We will start by offering digital banking products using our technology platform.
As a bank, customers will have access to ATM networks and other payment systems,” Bindra said.
Merging Bank PMC will take several more months.
Last month, the central bank was looking for depositor approval to seek assistance of up to 5 lakh rs under deposit insurance.
Depositors have until October 15 to submit their claims.
The incorporation of the PMC Bank business will occur only after retail claims are resolved by deposit insurance and Indian corporate warranty credit.
“The proposed business model is one collaboration and open architecture, uniting all its stakeholders to provide a smooth digital experience.
Micro Finance Business Centrum and Micro Success will join the Unity Small Finance Bank,” said a statement issued by partners.