Shivalik Bank secures commercial banking license from RBI

Shivalik Small Finance Bank (SSFB) has secured a commercial banking license from the Reserve Bank of India (RBI) to operate as a small finance bank (SFB) in India.

Headquartered in Saharanpur, Uttar Pradesh, Shivalik Small Finance Bank said that the license represents the successful completion of the last key step in its transition from Shivalik Mercantile Co-operative Bank (SMCB) to a small finance bank.

Shivalik Mercantile Co-operative Bank is said to be the first urban cooperative bank (UCB) in India to have transitioned to a small finance bank under the voluntary transition scheme.

Presently, Shivalik Small Finance Bank caters to customers across Uttar Pradesh, Madhya Pradesh, Uttarakhand, and Delhi.

Operating for 22 years, the bank claims to serve more than four lakh unique customers via various customer touchpoints that include banking outlets, ATMs, internet banking, mobile banking, and doorstep services using hand held devices.

As of 31 March 2020, the total business size of Shivalik Small Finance Bank was around INR18 billion ($250 million).

The bank anticipates to begin business as a small finance bank by April 2021.

Suveer Kumar Gupta – Shivalik Mercantile Cooperative Bank MD and CEO said: “It is an honour for Shivalik to be the first UCB in India to transition to a Small Finance Bank. A scheduled commercial banking license will alter our identity significantly allowing us to offer banking services across the country, offer a complete range of retail banking solutions to our customers and further our goal of financial inclusion.

“With a rich 22 year banking heritage and experience, Shivalik is well placed to significantly benefit from becoming a Small Finance Bank. Our vision is to build a new age bank which is digital first and customer oriented at its roots.”