The Reserve Bank of India (RBI) has issued an In-principle approval to Centrum Financial Services Limited (Centrum), an NBFC arm of the Centrum Group to establish a Small Finance Bank (SFB). This will be in partnership with Resilient Innovations Private Limited that owns BharatPe, a fintech company.
In a joint statement, it was stated "SFB will be guided by the directions and timelines of the RBI on the amalgamation of Punjab & Maharashtra Co-Operative Bank Limited."
The RBI’s in-principle approval is a validation of Centrum’s proven expertise in financial services and BharatPe’s Digital Leadership, "both essential for setting up a new age bank."
It was further stated "starting off with existing capabilities of an NBFC and a fintech, active and potential customer base, digital reach and technology, should enable the SFB to scale up quickly."
Commenting on the development, Jaspal Bindra, Executive Chairman, Centrum Group, said “We are delighted that a new banking license will be issued to a NBFC after a gap of nearly 6 years and would like to thank the RBI for the opportunity and confidence shown in us. We are excited to partner with BharatPe to create this new age bank, with a strong team.”
“We are delighted at the opportunity to build a high performing technology led Small Finance Bank serving the payment, investment and credit needs of the under-served. With Centrum as our partner, we are confident that we can create a world-class institution that provides a differentiated and superlative experience to retail customers as well as small businesses.” added Ashneer Grover, CEO and Co-Founder, BharatPe.