Capital Local Area Bank


Ajit Kumar AJIT KUMARWISDOM IAS, New Delhi.

Capital Local Area Bank has emerged as the first bank to have received licence from the Reserve Bank of India to start small finance bank. It would be operational on April 13, 2016 on the auspicious day of Baisakhi. With net worth of Rs 100 crore as a minimum requirement for a small finance bank, the bank plans to raise its net worth to Rs 120 crore by the end of this fiscal.

RBI has granted approval to 10 entities, including Capital Local Area Bank, to operate as small finance banks.

The mandate for a small finance bank is to provide basic banking services like accepting deposits and lending to unbanked sections such as small farmers, micro business enterprises, micro and small industries and unorganised sector entities.

Operating as a private bank for the last 16 years, Capital Local Area Bank could expand itself after migrating into a small finance bank.

Monday, 11th Apr 2016, 12:42:14 AM

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