RBI grants 'in-principle' approval to Centrum Financial Services Limited to take over PMC Bank

The Reserve Bank of India  on June 18 said it has decided to grant “in-principle” approval to Centrum Financial Services Limited to set up a small finance bank.

This “in-principle” approval has been accorded in specific pursuance to Centrum Financial Services Limited’s offer dated February 1, 2021, in response to the Expression of Interest notification dated November 3, 2020, published by the Punjab & Maharashtra Co-operative Bank Ltd., Mumbai, the RBI said

The approval is under the general “Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector” dated December 5, 2019, the RBI said.

"The RBI would consider granting a licence for commencement of banking business under Section 22 (1) of the Banking Regulation Act, 1949, on being satisfied that the applicant has complied with the requisite conditions laid down by RBI as part of “in-principle” approval," the RBI said.