NEW DELHI, DEC 27: Non-banking finance company Au Financiers (India) has received final approval from the Reserve Bank of India to start operations as a small finance bank. “The company has now received final licence from Reserve Bank to establish and operate a small finance bank in India,” the Jaipur-based NBFC said in a statement. The company was among the 10 entities that received in-
principle approval from RBI last year to set up a small finance bank.The company has operations in 10 states with 300 branches and finances commercial and personal vehicle loans, as well as caters to micro, small and medium enterprises.
“It is a huge step for our company...to launch small finance bank. The transition of Au Financiers from an NBFC into a small finance bank is natural progression for us. It will enable us to serve entire bouquet of financial services to our under-served customer base,” Au Financiers (India) Ltd Managing Director Sanjay Agarwal said.
Agarwal said it will help the company to further the financial inclusion programme and align with the government’s host of measures on this front.
The company said it will focus on world-class technology and create unique and digitally differentiated experience for the customers.
Citing analysts’ estimate that there is a huge void in the Indian banking system despite having regional rural, cooperative banks and other small entities besides a giant network of public and private sector banks, Au Financiers said the gap can be bridged by SFBs.
“The introduction of small finance banks in the Indian banking system will prove to be a game changer in terms of archiving the goals of PMJDY,” Agarwal said.
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