- SMCB is renamed as Shivalik Small Finance Bank (SSFB).
- The bank expects to commence business as a SFB by April 2021.
Note– Generally, Banking license is given by RBI under Banking Regulation Act, 1949
i.SMCB received an ‘in-principle’ approval from RBI in January 2020 for converting it into a SFB and became the 1st UCB to get this approval from RBI.
ii.It was also given 18 months time to commence business as a Small Finance Bank.
i.SSFB will offer banking services across India and also offer a complete range of retail banking solutions to its customers.
ii.It also further the SMCB’s goal of financial inclusion.
Gist about SMCB:
i.It is the 1st and largest multi-state UCB in Uttar Pradesh(UP) and has played an important role in financial inclusion through a technology focussed approach.
ii.It currently operates in UP, Madhya Pradesh, Delhi, and Uttarakhand with 400,000 customers through its 31 branches and over 250 banking agents.
iii.It is live on all the significant payment platforms and also provides a best-in-class digital experience to customers. The major technology platforms of the bank are powered by Infosys Finacle using a cloud native model
iv.The total business size of the bank was approximately Rs 1,800 Crores as on March 31, 2020
Recent Related News:
In exercise of powers vested in it under sub section (1) of Section 35 A of the Banking Regulation Act, 1949 read with Section 56 of the Banking Regulation Act, 1949, the Reserve Bank of India (RBI) imposed restrictions on withdrawals from Jalna, Maharashtra-based Mantha Urban Cooperative Bank for six months from November 17, 2020.
About Shivalik Mercantile Co-operative Bank (SMCB) Ltd:
i.It was registered as a Co-operative Society under Uttar Pradesh Co-operative Societies Act, 1965.
ii.In 2010, it acquired Dhar Bank(Madhya Pradesh), which helped the bank to get Multi-state Cooperative Bank status under Multi-State Co-operative Societies Act(MSCS), 2002
Head Office– Saharanpur, UP
Commenced Operations– September 5, 1998(as Primary Urban Coop. Bank)
MD & CEO– Mr. Suveer Kumar Gupta
Chairman– Yashvir Kumar Gupta