Jalandhar based Capital Local Area Bank (CLAB) Limited became the first financial entity in India to get Small Financial Bank Licence by the Reserve Bank of India (RBI).
CLAB ltd claims to be largest local bank in the country with total 44 branches in five districts of Punjab. It will begin its operations as a small finance bank from April 13, 2016 and it will focus on the northern region for first five years of operations.
- Earlier in September 2015, RBI has granted in principle approval to 10 entities including CLAB ltd to set up small finance banks to provide basic banking services to small farmers and micro industries.
- The in-principle approval had enabled these entities comply with the guidelines on Small Finance Banks and the approval will be valid for 18 months.
About Small Finance Bank
- The small finance bank will undertake basic banking activities of acceptance of deposits and lending to unserved and underserved to further financial inclusion in the country.
- It will provide banking facilities to the unbanked sections and thereby boosting saving habits.
- It will mainly target small business units, marginal farmers and unorganised sector entities through high technology-low cost operations.
For more details