CURRENT AFFAIRS

Detailed explanation-1: -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.

Detailed explanation-2: -The Reserve Bank of India (RBI) issues licences to entities to carry on the business of banking and other businesses in which banking companies may engage, as defined and described in Sections 5 (b) and 6 (1) (a) to (o) of the Banking Regulation Act, 1949, respectively.

Detailed explanation-3: -The Reserve Bank cancelled the licence of the bank as: i) The bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949.

Detailed explanation-4: -The Reserve Bank of India on Tuesday granted a banking licence to Unity Small Finance Bank Ltd (USFBL), which was established jointly by the Centrum Financial Services Ltd (CFSL) and Resilient Innovations Private Limited (BharatPe), to carry on a SFB business in India.

Detailed explanation-5: -UPSC Mains. Q. Which is the first Urban Cooperative Bank in India, to be converted into a Small Finance Bank? Notes: Uttar Pradesh-based Shivalik Mercantile Co-operative Bank (SMCB) has received a license from the Reserve Bank of India (RBI) as a Small Finance Bank (SFB).