Business Mantra, Faridabad: 17th September, 2015
Reserve Bank of India in its notification has announced to 10 finance companies, out of 72 applications received, to do business of Micro financing specially in under-banked and un-banked area of the country and to unorganized and un-banked sector. The basis of selection of these companies, by three independent committees of RBI, was financial viability, soundness, business planning, due diligence reports from the investigating agencies and Banks etc.
The following are the 10 companies which have already been doing micro-financing business:
- AU Financers, Jaipur.
- Capital Local Area Bank, Jalandhar.
- Disha Microfin, Ahemedabad.
- ESAF Microfinance, Chennei.
- Janalakshmi Financial, Bangaloru.
- RGVN, North East Microfinance, Guwahati.
- Suryoday Micro Finance, Mumbai.
- Ujjivan Financial Services, Bangaloru
- Utkarsh Microfinance, Varanasi.
- Equitas Holdings, Chennei
Licence to these companies shall be for 18 months and thereafter, the same shall be reviewed for renewal. These companies have to comply with the norms of micro-financing. These companies are allowed to accept deposits and grant loans to small farmers, micro business enterprises, micro and small industries and other entities in unorganized sectors in the country.
There are different set of rules for the Micro Financing Companies and out of the above companies there are companies who have to reduce their overseas holdings under Banking Regulations.
This is noteworthy that RBI has also given full-fledged Banking licenses to IDFC and Bandhan besides licenses to 11 Payment Banks recently.