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Detailed explanation-1: -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).

Detailed explanation-2: -The first urban cooperative credit society was registered in Canjeevaram (Kanjivaram) in the erstwhile Madras province in October, 1904. Amongst the prominent credit societies were the Pioneer Urban in Bombay (November 11, 1905), the No.

Detailed explanation-3: -Capital Small Finance Bank (erstwhile Capital Local Area Bank) is the India’s first small finance bank founded in April 2016 as a microfinance lender, with its headquarters in Jalandhar, India.

Detailed explanation-4: -Shivalik became the first Small Finance Bank in India to transition from an Urban Co-operative Bank.

Detailed explanation-5: -The correct answer is Shivalik Mercantile Co-operative Bank. Shivalik Mercantile Co-operative Bank (SMCB) is the first Urban Co-operative bank that has received in-principal approval from RBI to become Small Finance Bank.