Equitas receives RBI's permission to apply for Scheme of Amalgamation

Equitas Small Finance Bank | Representative image

Equitas Small Finance Bank on July 10 informed that it has received the Reserve Bank of India's permission to apply for scheme of amalgamation, it said in a regulatory filing.

Apart from this, RBI has also conveyed that any 'no objection', if and when given on the Scheme of Amalgamation, would be without prejudice to the powers of RBI to initiate action if licensing guidelines are violated.

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Earlier on July 9, RBI vide its communication to the Equitas Small Finance Bank Limited (ESFBL) has permitted it to apply to RBI seeking approval for Scheme of Amalgamation.

Meanwhile, the initial promoter lock-in for the company -- Equitas -- expires on September 4, 2021. Citing this, ESFBL had requested RBI if a scheme of amalgamation of Equitas with the ESFBL can be submitted to RBI for approval, prior to the expiry of the said five years, to take effect after the initial promoter lock-in expires.

Following the approval, Equitas mentioned that they would be initiating steps to finalise the scheme of amalgamation, submit to the
Boards of the firm and the ESFBL for approval.