The Reserve Bank of India (RBI) on Tuesday gave a Small Finance Bank (SFB) permit to the consortium of Centrum Financial Services Limited (Centrum) and BharatPe. "Another bank permit has been given after a hole of almost 6 years, and we thank the RBI for the certainty displayed in the capacities of Centrum and BharatPe," Centrum said in an administrative recording.
The new SFB, has been incorporated as ‘Unity Small Finance Bank’. “Unity as a name has tremendous significance on many counts for both Centrum and BharatPe. It is the first time ever that two partners are uniting equally to build a Bank," they said, adding that the proposed business model is one of collaboration and open architecture, uniting all its stakeholders to deliver a seamless digital experience.
Centrum’s MSME and Micro Finance businesses shall be merged into Unity Small Finance Bank, the statement added.
Commenting on the development, Jaspal Bindra, Executive Chairman, Centrum Group, said “We are delighted to receive the license and excited to partner with BharatPe to create this new age bank, with a strong team. We aspire to be India’s first Digital Bank."
“I wish to thank RBI for entrusting the Unity of BharatPe and Centrum with the SFB License. We will work tirelessly and smartly to capture this opportunity and build India’s first truly Digital Bank ground up," added Ashneer Grover, Co-Founder and Managing Director, BharatPe.