Incorporated as Unity Small Finance Bank, the small finance bank will assume the assets and liabilities of the Punjab and Maharashtra Co-operative Bank and transfer them to itself.
A small finance bank license was awarded by the Reserve Bank of India (RBI) on October 12 to a consortium consisting of Centrum Financial Services Limited (Centrum) and Resilient Innovations Private Limited (BharatPe), according to Centrum Financial Services Limited (Centrum) in an exchange filing.
The Punjab and Maharashtra Co-operative Bank assets and liabilities would be transferred to the newly formed organization.
Who will consolidate centrum's small and medium-sized enterprise (SME) and microfinance operations under Unity Small Finance Bank?
Centrum stated in a press statement that this is the first time that the two partners are working together on an equal basis to establish a bank and that the planned business model is one of collaboration and open technology.
"We are thrilled to have received the license and are looking forward to collaborating with BharatPe to establish this new era bank with a great staff," stated Jaspal Bindra, Executive Chairman of Centrum Group. "We want to be India's first digital bank," says the CEO.
"I would like to express my gratitude to the Reserve Bank of India for handing the SFB license to the Unity of BharatPe and Centrum. 'We are committed to working hard and strategically to seize this opportunity and establish India's first completely digital bank from the bottom up,' Ashneer Grover, Co-Founder and Managing Director of Bharat stated in a statement.
Grover stated in a recent interview with Moneycontrol that establishing their small finance bank will allow them to lend more money to more people. Clients pay the merchant using its QR code and card machine while BharatPe completes the transaction on their behalf.
"We provide loans based on the fact that the payments are being made. We are aware of the volume of business that this merchant does via our system. Alternatively, what if we started providing him a bank account in addition to every QR code the next day? "Grover shared his thoughts.
He noted that more flows into the bank account will be visible to us, rather than simply the movements on the QR code.
Centrum Financial Services has received "in principle" clearance from the Reserve Bank of India to establish a small finance bank, paving the door for it to take over the troubled PMC Bank in the process. Who gave the clearance in line with Centrum Financial Services' offer in response to an expression of interest announcement issued by PMC Bank and accepted by the bank.
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