RBI Decided To Grant In-Principle Approval To Centrum Financial Services Ltd.

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Mumbai:To set up a small finance bank  The Reserve Bank Of India (RBI)  on Friday decided to grant  in_principle approval to Centrum  Financial Services  Ltd.

Centrum   Financial Services Ltd’s offer dated Feburary 1,2021 in response to the  Expression of Interest notification dated November 3rd,2020, published by the PMC Bank, the RBI said in the statement.

The central bank will consider granting a licence for commencement of banking business under section 22 (1)  of the banking Regulation Act,1949, on being satisfied  that the applicant has complied with the  requisite conditions laid down by the RBI as part of “in principle” approval. It  is said in the statement.

RBI has today decided   to grant ‘in principle’ approval to Centrum Financial Services Ltd. To set up a small finance bank under general guidelines for on tap Licensing of Small Finance Banks  in the  Private Sector’ dated December 5th 2019.it said in the statement ..

RBI had further extended   restrictions on the bank till June 30th 2021. The process of reconstruction will be commenced as soon as the aforesaid objectives are achieved to the best possible extent.

The RBI and the PMC   Bank are presently engaging with prospective investors in order to secure best possible terms for the depositors and other stakeholders  while ensuring long-term viability of the reconstructed entity, the RBI  had said  in March , adding that given the financial condition of the PMC  Bank, the process is complex and is likely to take some more time.