IDFC Ltd has announced that its unit IDFC Bank Ltd has got a license from the Reserve Bank of India for undertaking banking business in India under Section 22(1) of the Banking Regulation Act, 1949. IDFC becomes the second lender to enter the banking sector after more than a decade. IDFC Bank plans to start operation from October 1 2015 with an initial loan book of around Rs 55,000 crore with an estimated 20 branches.
Important Facts
- Indian microfinance company Bandhan Financial Services and Mumbai-based IDFC were the only two companies to be granted preliminary bank permits in 2014.
- Yes Bank was the last bank to be set up, in 2004.
- According to a survey, only one third of people in India have bank accounts.
- Pradhan Mantri Jan Dhan Yojana is a National Mission for Financial Inclusion to ensure access to financial services to all people of India.
- Guinness World Records Recognises the Achievements made under PMJDY.
- To boost financial inclusion, the Reserve Bank of India issued draft guidelines for two new categories of banks – Small Banks and Payment Banks.
Test Your Knowledge
Name the committee formed in 2014, which is associated with new bank licenses?
What is the minimum capital requirement for Small Banks and Payment Banks?
