Shivalik Small Finance Bank Limited (SSFB) has commenced operations as a small finance bank with effect from April 26, 2021, stated Reserve Bank of India (RBI). The banking regulator has issued licenses to around 10 small finance banks in the country.
The Reserve Bank has issued a licence to Shivalik Small Finance Bank Limited under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of small finance bank in India.
Shivalik Mercantile Co-operative Bank Limited was granted an in-principle approval for transition into a small finance bank under the “Scheme on the voluntary transition of Urban Co-operative Bank into a Small Finance Bank” issued on September 27, 2018.
Shivalik Mercantile Co-operative Bank (SMCB) is the first urban co-operative bank (UCB) in India to transition to a SFB under the voluntary transition scheme. The RBI had given an 18-month timeline to commence business.
SSFB operates through 31 branches and over 250 banking agents in Uttar Pradesh, Madhya Pradesh, Delhi, and Uttarakhand.