Approval granted will be valid for 18 months to enable the applicant to comply with the requirements under the Scheme
The Reserve Bank of India (RBI) has granted "in -principle" approval to Shivalik Mercantile Co-operative Bank Limited (the applicant) for transition into a Small Finance Bank (SFB) under the "Scheme on voluntary transition of Urban Co-operative Bank into a Small Finance Bank" (the Scheme) issued on 27 September 2018.The "in-principle" approval granted will be valid for 18 months to enable the applicant to comply with the requirements under the Scheme, the Guidelines for 'on tap' Licensing of Small Finance Banks in the Private Sector dated 5 December 2019 and fulfil other conditions as stipulated by the RBI.
On being satisfied that the applicant has complied with the requisite conditions laid down by it as part of "in -principle" approval, the RBI would consider granting it a licence for commencement of banking business under Section 22 (1) of the Banking Regulation Act, 1949 as a SFB.
In the Statement on Developmental and Regulatory Policies, dated 6 June 2018, the RBI had announced that it would allow voluntary transition of UCBs which meet certain conditions into SFBs, in pursuance of the recommendations of High Powered Committee on UCBs (2015), chaired by R Gandhi. Accordingly, Scheme on voluntary transition of UCB into a SFB was issued on 27 September 2018.
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