Mumbai, Sept 17 (KNN) The Reserve Bank of India (RBI) on Wednesday gave in-principle approval to 10 micro lenders to set up small banks to give loans primarily to the unbanked, small businesses and farmers, micro and small industries and unorganized sector entities which do not have access to finance from the larger banks. 
 
The applicants who have got the approval are - Au Financiers (India) Ltd., Jaipur; Capital Local Area Bank Ltd., Jalandhar; Disha Microfin Private Ltd., Ahmedabad; Equitas Holdings P Limited, Chennai; ESAF Microfinance and Investments Private Ltd., Chennai; Janalakshmi Financial Services Private Limited, Bengaluru; RGVN (North East) Microfinance Limited, Guwahati; Suryoday Micro Finance Private Ltd., Navi Mumbai; Ujjivan Financial Services Private Ltd., Bengaluru; and Utkarsh Micro Finance Private Ltd., Varanasi.
 
The “in-principle” approval granted will be valid for 18 months to enable the applicants to comply with the requirements under the Guidelines and fulfil other conditions as may be stipulated by the RBI.
 
On being satisfied that the applicants have complied with the requisite conditions laid down by it as part of “in-principle” approval, the RBI would consider granting them a licence for commencement of banking business under Section 22(1) of the Banking Regulation Act, 1949, said RBI.
 
Until a regular licence is issued, the applicants cannot undertake any banking business, RBI added. (KNN Bureau)