{"id":223919,"date":"2020-01-07T15:30:26","date_gmt":"2020-01-07T10:00:26","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=223919"},"modified":"2020-01-07T15:19:04","modified_gmt":"2020-01-07T09:49:04","slug":"rbi-grants-in-principle-approval-to-shivalik-mercantile-co-operative-bank-ltd-for-transition-into-a-small-finance-bank","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/01\/07\/rbi-grants-in-principle-approval-to-shivalik-mercantile-co-operative-bank-ltd-for-transition-into-a-small-finance-bank\/","title":{"rendered":"RBI grants \u201cIn-principle\u201d Approval to Shivalik Mercantile Co-operative Bank Ltd. for transition into a Small Finance Bank"},"content":{"rendered":"<p style=\"text-align: justify;\">The <span style=\"color: #008000;\">Reserve Bank of India (RBI) has granted \u201cin-principle\u201d approval to Shivalik Mercantile Co-operative Bank Limited (the applicant) for transition into a Small Finance Bank (SFB) under the \u201cScheme on voluntary transition of Urban Co-operative Bank into a Small Finance Bank\u201d<\/span> (the <a class=\"links\" href=\"https:\/\/www.rbi.org.in\/Scripts\/NotificationUser.aspx?Id=11381&amp;Mode=0\" target=\"_blank\" rel=\"noopener noreferrer\">Scheme<\/a>) issued on September 27, 2018.<\/p>\n<p><span style=\"color: #800080;\">Shivalik Mercantile Co-operative Bank Limited is the first bank to become a Small-Finance Bank. To make significant and smooth improvements in Urban Cooperative Banks, RB also introduced the <a href=\"https:\/\/www.rbi.org.in\/Scripts\/NotificationUser.aspx?Id=11779&amp;Mode=0\"><b>Supervisory Action Framework for Primary (Urban) Co-operative Banks (UCBs).<\/b><\/a><\/span><\/p>\n<p style=\"text-align: justify;\">The \u201cin-principle\u201d approval granted will be valid for 18 months to enable the applicant to comply with the requirements under the Scheme, the\u00a0<a class=\"links\" href=\"https:\/\/www.rbi.org.in\/Scripts\/BS_PressReleaseDisplay.aspx?prid=48807\" target=\"_blank\" rel=\"noopener noreferrer\">Guidelines for \u2018on tap\u2019 Licensing of Small Finance Banks in the Private Sector dated December 5, 2019<\/a>, and fulfill other conditions as stipulated by the RBI. On being satisfied that the applicant has complied with the requisite conditions laid down by it as part of \u201cin-principle\u201d approval, the RBI would consider granting it a licence for the commencement of banking business under Section 22 (1) of the Banking Regulation Act, 1949 as an SFB.<\/p>\n<p class=\"head\" style=\"text-align: justify;\"><strong>Background<\/strong><\/p>\n<p style=\"text-align: justify;\">It may be recalled that in the\u00a0<a class=\"links\" href=\"https:\/\/www.rbi.org.in\/Scripts\/BS_PressReleaseDisplay.aspx?prid=44126\" target=\"_blank\" rel=\"noopener noreferrer\">Statement on Developmental and Regulatory Policies, dated June 06, 2018<\/a>, the RBI had announced that it would allow voluntary transition of UCBs which meet certain conditions into SFBs, in pursuance of the recommendations of\u00a0<a class=\"links\" href=\"https:\/\/www.rbi.org.in\/Scripts\/PublicationReportDetails.aspx?UrlPage=&amp;ID=822\" target=\"_blank\" rel=\"noopener noreferrer\">High Powered Committee on UCBs (2015)<\/a>, chaired by Shri R Gandhi. Accordingly, Scheme on the voluntary transition of UCB into an SFB was issued on September 27, 2018.<\/p>\n<hr \/>\n<p><strong>Reserve Bank of India<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>[Press Release dt. 06-01-2020]<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Reserve Bank of India (RBI) has granted \u201cin-principle\u201d approval to Shivalik Mercantile Co-operative Bank Limited (the applicant) for transition into a <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8051,2],"tags":[39153,39154,39155,39156],"class_list":["post-223919","post","type-post","status-publish","format-standard","hentry","category-business_news","category-news","tag-shivalik-mercantile-co-operative-bank-limited","tag-small-finance-bank","tag-urban-co-operative-bank","tag-voluntary-transition"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>RBI grants \u201cIn-principle\u201d Approval to Shivalik Mercantile Co-operative Bank Ltd. for transition into a Small Finance Bank | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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The move aims to enhance operational autonomy, expand credit outreach, and promote technology-driven solutions while ensuring strong regulatory safeguards.","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"RBI guidelines for co-operative banks","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/RBI-guidelines-for-co-operative-banks-1.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/RBI-guidelines-for-co-operative-banks-1.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/RBI-guidelines-for-co-operative-banks-1.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/RBI-guidelines-for-co-operative-banks-1.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":222903,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/12\/06\/rbi-releases-guidelines-for-on-tap-licensing-of-small-finance-banks-in-the-private-sector\/","url_meta":{"origin":223919,"position":2},"title":"RBI releases \u201cGuidelines for \u2018on tap\u2019 Licensing of Small Finance Banks in the Private Sector\u201d","author":"Bhumika Indulia","date":"December 6, 2019","format":false,"excerpt":"The Reserve Bank of India released on its website, \u201cGuidelines for \u2018on tap\u2019 Licensing of Small Finance Banks in the Private Sector\u201d. Major changes from the earlier Guidelines on Small Finance Banks dated November 27, 2014, are (i) The licensing window will be open on-tap; (ii) minimum paid-up voting equity\u2026","rel":"","context":"In &quot;Business News&quot;","block_context":{"text":"Business News","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/business_news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/RBI-3.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/RBI-3.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/RBI-3.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/RBI-3.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/RBI-3.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":263098,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/03\/04\/rbi-issues-notification-on-investment-in-umbrella-organization-uo-by-primary-urban-co-operative-banks\/","url_meta":{"origin":223919,"position":3},"title":"RBI issues notification on investment in Umbrella Organization (UO) by Primary (Urban) Co-operative Banks","author":"Bhumika Indulia","date":"March 4, 2022","format":false,"excerpt":"On March 03, 2022, the Reserve Bank of India (RBI) has issued notification on Investment in Umbrella Organization (UO) by Primary (Urban) Co-operative Banks. Applicability: Primary (Urban) Co-operative Banks. \u00a0 Key points: Investment made for subscribing to the capital of the UO, for acquiring its membership, shall be exempt from\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/rbi_2.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/rbi_2.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/rbi_2.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/rbi_2.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/rbi_2.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":236574,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/10\/01\/banking-regulation-amendment-act-2020-rbi-to-prepare-a-scheme-for-reconstruction-or-amalgamation-of-banking-company-without-necessity-of-a-moratorium-order\/","url_meta":{"origin":223919,"position":4},"title":"Banking Regulation (Amendment) Act, 2020 | Co-operative banks brought under RBI supervision","author":"Bhumika Indulia","date":"October 1, 2020","format":false,"excerpt":"Banking Regulation (Amendment) Bill, 2020 received Presidential Assent on 29-09-2020. The Banking Regulation (Amendment) Act, 2020 The Banking Regulation (Amendment) Act, 2020 will replace the Banking Regulation (Amendment) Ordinance, 2020. Certain amendments were considered necessary in the said Act to provide for better management and proper regulation of co-operative banks\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":231355,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/06\/25\/bom-hc-cancellation-of-ckp-co-operative-banks-license-is-in-depositors-interest-interim-relief-refused\/","url_meta":{"origin":223919,"position":5},"title":"Bom HC | Cancellation of CKP Co-operative Bank&#8217;s license is in depositors interest; Interim relief refused","author":"Bhumika Indulia","date":"June 25, 2020","format":false,"excerpt":"Bombay High Court:\u00a0A Division Bench of Nitin Jamdar and S.P. Tavade, JJ., held that Reserve Bank of India's decision to cancel the banking license of CKP Co-operative Bank Limited is not to be interfered with. Present petitions were filed challenging the respondents' -- Reserve Bank of India action wherein the\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/223919","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=223919"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/223919\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=223919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=223919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=223919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}