Ujjivan Small Finance Bank receives Scheduled Bank Status from RBI
Chennai, 30 August 2017: Ujjivan Small Finance Bank Limited, a wholly-owned subsidiary of Ujjivan Financial Services Limited has been included in the Second Schedule to the Reserve Bank of India Act, 1934 vide RBI Notification DBR.PSBD.No. 467/16.02.006/2017-18 dated July 3, 2017 and published in the Gazette of India (Part III-Section 4) dated August 25, 2017. With this, Ujjivan Small Finance Bank (Ujjivan SFB) has now attained the status of a Scheduled Bank.
Ujjivan SFB commenced its operations as a Small Finance Bank with effect from February 01, 2017. Currently, Ujjivan SFB has 65 full-fledged brick and mortar branches operating in eight (8) States and two (2) Union Territories. It plans to convert 160 existing branches and 29 new Unbanked Rural Centres (URCs) by the end of FY 2017-18 and the remaining branches will be converted over a period of two years as per RBI approval.
Commenting on the development, Mr. Samit Ghosh, MD & CEO of Ujjivan SFB said, “This is a very important milestone in our journey to transform from a microfinance company to a Small Finance Bank. It completes the transition phase which started over two years ago and provides the final seal of approval from the Reserve Bank of India in setting up the Small Finance Bank. This status will enhance the market acceptability of the bank in its effort to garner institutional deposits at a competitive price and participate more actively in the inter-bank market. It also opens the door for issuing Certificate of Deposits (CDs), which will be an important source of funding.”
