The assets and liabilities of Punjab and Maharashtra Co-operative Bank will be transferred to the small finance bank, known as Unity Small Finance Bank.
The Reserve Bank of India (RBI) granted Centrum Financial Services Limited (Centrum) and Resilient Innovations Private Limited (BharatPe) a small finance bank license on October 12, Centrum stated in an exchange filing.
Punjab and Maharashtra Co-operative Bank's assets and liabilities would be transferred to the new organization.
Unity Small Finance Bank will combine Centrum's MSME and Micro Finance operations.
According to Centrum, this is the first time the two parties have established a bank on an equal footing. The suggested business strategy is one of collaboration and open architecture.
"We are thrilled to acquire the license and excited to collaborate with BharatPe to build this new era bank, with a great team," Jaspal Bindra, Executive Chairman, Centrum Group, stated. We want to be the first digital bank in India."
"I'd like to express my gratitude to the RBI for handing the SFB license to Unity of BharatPe and Centrum. In the release, Ashneer Grover, Co-Founder and Managing Director of Bharat said, "We will work relentlessly and wisely to seize this opportunity and establish India's first completely digital bank from the ground up."
Grover recently told Moneycontrol that establishing their small finance bank will allow them to lend more. Customers pay the merchant using BharatPe's QR code and card machine, and BharatPe settles the transaction.
"We make loans based on the fact that payments have been made. We have a good idea of how much business this merchant generates through our system. But what if we started providing him a bank account behind every QR code tomorrow? "Grover said.
He noted that we'd be able to see more movements into bank accounts rather than simply QR flows.
Centrum Financial Services received "in-principle" clearance from the RBI to establish a small financing bank, clearing the door for it to take over the troubled PMC Bank. Who gave the support in response to Centrum Financial Services' offer to PMC Bank's expression of interest announcement.
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