Shivalik Small Finance Bank Ltd has commenced operations as a small finance bank with effect from Monday.
The Reserve Bank of India has issued a license to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of small finance banks in India, said an RBI statement.
Shivalik Mercantile Co-operative Bank Limited was granted an in-principle approval for transition into a small finance bank, under the “Scheme on voluntary transition of Urban Co-operative Bank into a Small Finance Bank” issued on September 27, 2018.
The financial institution was registered as a Co-operative Society under the Uttar Pradesh Co-operative Societies Act, 1965, in 1997. It was granted license by the RBI to conduct banking business as a primary urban co-operative bank in the state’s Saharanpur district.
As per the company website, it is the first urban co-operative bank in the country to transition into a small finance bank.
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