RBI announces commencement of North East Small Finance Bank operations

New Delhi, Oct 20 (KNN) In order to facilitate credit to the small businesses and units in the region, the North Ease Small Finance Bank has started its operations, Reserve Bank of India informed.

The operation commences as the Reserve Bank issued a licence to the bank under the Banking Regulation Act, 1949 to carry on the business of small finance bank in India.

The Reserve bank earlier approved another such institution the Rashtriya Gramin Vikas Nidhi Microfinance Limited-- North East (RGVNMFL-NE), to operate as a small finance bank.

The basic purpose of a small finance bank is to serve credit and facilitate other financial transactions to the underserved and un-served section of the economy.

The priority list of these banks usually includes the small businesses, marginal farmers and unorganized sector units.  Also the Micro, Small and Medium Enterprises are facilitated services through the small finance banks. (KNN/ DA)