The Reserve Bank of India has today notified that Capital Small Finance Bank Ltd. commenced its operations as a small finance bank (SFB) with effect from April 24, 2016. The Reserve Bank has issued a licence to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of small finance bank in India.
The Capital Small Finance Bank Ltd. has been set up by converting the erstwhile Capital Local Area Bank Ltd. Consequently, Capital Local Area Bank Ltd. ceases to exist with effect from April 24, 2016. Capital Local Area Bank Ltd. was one of the 10 applicants to be given in-principle approval for setting up SFBs as announced by the Reserve Bank in its press release dated September 16, 2015.
Alpana Killawala Principal Adviser
Press Release: 2015-2016/2511
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