Centrum BharatPe gets small fin bank licence

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MUMBAI: The RBI on Tuesday issued a small financial bank (SFB) license to the consortium of Centrum Financial Services (Centrum) and Resilient Innovations (BharatPe).
The new SFB has been incorporated as’Unity Small Finance Bank‘- the first new banking license in six years.
The RBI had issued approval in principle for the consortium earlier this year on the condition that it acquire the Punjab & Maharashtra Cooperative (PMC) Bank business and assist in its resolution. In the first phase, Centrum’s loan business (small business loans and microfinance) would be subsumed in the bank. It will also acquire some assets from BharatPe.
Meanwhile, BharatPe announced on Tuesday that it has appointed the former SBI chair Rajnish kumar as its president.
Speaking to TOI, CEO of Centrum Group Jaspal bindra He said that since the proposed bank would be digital, it would not require physical infrastructure in the form of branches.
“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 the ATM network and other payment systems, ”said Bindra.
The merger of PMC Bank would take a few more months. Last month, the central bank requested the depositor’s consent to request relief of up to Rs 5 lakh under the deposit insurance. Depositors have until October 15 to submit their claims. The merger of the PMC Bank business will occur only after the retail claims are settled by the Deposit Insurance and Credit Guarantee Corporation of India.
“The proposed business model is one of collaboration and open architecture, bringing together all its stakeholders to offer a seamless digital experience. Centrum’s successful micro and microenterprise businesses will be merged into Unity Small Finance Bank, ”said a statement issued by the partners.





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