Centrum Financial Services gets `in-principle' approval for setting up small finance bank
28 June 2021
The Reserve Bank of India (RBI) has decided to grant “in-principle” approval to Centrum Financial Services Limited for setting up a small finance bank. RBI would consider granting a licence for commencement of banking business on being satisfied that the applicant has complied with the requisite conditions laid down by RBI as part of “in-principle” approval.
- The licensing window will be open on-tap;
- Minimum paid-up voting equity capital / net worth requirement shall be Rs200 crore;
- Primary (urban) co-operative banks can transit into small finance banks with initial net worth of Rs100 crore and increase it Rs200 crore within five years (the net-worth of all SFBs currently in operation is in excess of Rs200 crore;
- SFBs will be given scheduled bank status immediately upon commencement of operations;
- SFBs will have general permission to open banking outlets from the date of commencement of operations;
- Payments Banks can apply for conversion into SFB after five years of operations, if they are otherwise eligible as per these guidelines.