When did Bandhan Bank get a banking license?

On 17 June 2015, the Reserve Bank of India granted the universal banking licence to Bandhan Bank. The same year, on 23 August, the bank started operations with 501 branches, 50 ATMs and 2,022 DSC.

Why Bandhan Bank is different?

“Bandhan is in a different space compared to other universal banks. Its DNA is financial inclusion and to serve the vast unserved segments of our society,” says Samit Ghosh, founder of Ujjivan Financial Services, one of India’s most successful non-banking finance companies (NBFCs), which is now a small finance bank.

What do you mean by licensing of banks?

Licensing refers to the process of getting permission from a higher authority. Here licensing of banking companies refers to the process of getting permission from the Reserve bank of India to start banking companies in India under the banking regulation act 1949.

What is the meaning of Bandhan Bank?

Bandhan Bank is a commercial bank focused on serving underbanked and underpenetrated markets in India. Bandhan Bank is the first instance in India of a microfinance entity transforming into a universal bank. The bank’s total banking outlets as on 31 March 2021 stood at 5310.

Is Bandhan Bank regulated by RBI?

Kolkata: The Reserve Bank of India (RBI) has authorised Bandhan Bank as an Agency Bank of the RBI for undertaking Government business. With this, Bandhan Bank joins ranks with a few other scheduled private sector banks to be empanelled as Agency Banks of the RBI.

How does Bandhan work?

Base rate: Bandhan Bank has set its base rate at 12\% per annum. Base rate is the minimum rate at which banks can lend to its customers. Bandhan Bank will also focus on doorstep banking, under which it will reach out to customers instead of the customers visiting the branch.

Is Bandhan a safe bank?

Investing in a fixed deposits with the highest rating of AAA, rated by ICRA and CRISIL, is a reliable investment option. Thus, Bandhan Bank term deposit is safe and secure, as the funds are backed by the government no matter what the current situation of the Bank is.

When did RBI grant in-principle approval to IDFC and Bandhan Financial Services?

April 2, 2014: RBI grants in-principle approval to IDFC and Bandhan Financial Services to set up banks. The in-principle approval will be valid for 18 months.

What is the history of bank licensing in India?

The process to issue bank licences was started in February 2010, after a Budget announcement by the then finance minister (now President) Pranab Mukherjee, with the objective of promoting financial inclusion. Three years later, the RBI released the final licensing guidelines in February 2013. The deadline for filing applications was July 1, 2013.

How many new banks were formed in India in 1993?

January, 1993: Reserve Bank of India (RBI) released guidelines for licensing of new banks in the private sector. 10 new banks were formed on the basis of these guidelines. These were Global Trust Bank, ICICI Bank, HDFC Bank, Axis Bank, Bank of Punjab, IndusInd Bank, Centurion Bank, IDBI Bank, Times Bank and Development Credit Bank.

How long will it take ididfc and Bandhan to start operations?

IDFC and Bandhan will get a year and a half to begin operations, failing which their licences could be cancelled.