Centrum Financial, BharatPe get RBI approval to set up small finance bank

Centrum Financial Services Limited has secured an approval in-principle from the Reserve Bank of India (RBI) to establish a small finance bank (SFB) with Resilient Innovations Private Limited (doing business as BharatPe).

BharatPe, which is an Indian fintech company, will be an equal partner to Centrum Financial Services, which in turn is a non-banking financial company (NBFC) owned by Centrum Group.

Ashneer Grover – CEO and Co-Founder of BharatPe said: “We are delighted at the opportunity to build a high performing technology led Small Finance Bank serving the payment, investment and credit needs of the under-served.

“With Centrum as our partner, we are confident that we can create a world-class institution that provides a differentiated and superlative experience to retail customers as well as small businesses.”

Centrum Financial Services Limited, BharatPe get RBI approval to set up small finance bank. Photo courtesy of Free-Photos from Pixabay.

Centrum said that the in-principle approval from the RBI is a validation of its proven expertise in financial services and also the digital leadership of BharatPe, which are both necessary for establishing a new age bank.

The small finance bank is expected to quickly scale up courtesy by leveraging the existing capabilities of an NBFC and a fintech, their active and potential customer base, along with the combined digital reach and technology.

According to Centrum, the small finance bank will be guided by RBI’s directions and timelines on the unification of Punjab & Maharashtra Co-Operative Bank Limited.

Jaspal Bindra – Executive Chairman of Centrum Group said: “We are delighted that a new banking license will be issued to an NBFC after a gap of nearly 6 years and would like to thank the RBI for the opportunity and confidence shown in us. We are excited to partner with BharatPe to create this new age bank, with a strong team.”