Janalakshmi Financial Services gets final RBI nod for Small Finance Bank

Microfinance organisation Janalakshmi Financial Services (JFS), said it has received the final licence from Reserve Bank of India (RBI) to set up small finance bank (SFB).

Small Finance Banks are small banks set up to provide basic lending and deposits facilities to small institutions, businesses, farmers. It is set up with the purview of widening the financial inclusion. 

The bank will commence operations in the second quarter of the current financial year.

The bank plans to set up 300 bank branches during the year covering the major locations in the country.

"We are excited about this and this will take us closer to our vision of financial inclusion in its true sense.

We are well capitalised with investments from leading institutions," Janalakshmi Financial Services managing director and CEO V S Radhakrishnan, said in a statement.

He said the licence to operate as small finance bank will enable all existing over 5 million customers of Janalakshmi Financial Services to access financial services beyond the scope of microfinance.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)