Capital Local Area Bank receives RBI License to Operate as Small Finance Bank
March 5, 2016: Capital Local Area Bank has got a license from the RBI to operate as a small finance bank. It is the first bank that has received this license from the Reserve Bank of India.
"We plan to start its operations on April 13, on the auspicious day of Baisakhi," Sarvjit Singh Samra, managing director of the bank told the media. "The bank plans to open 10 new branches on the first day of operation," he added.
This bank is planning to keep all the branches open for all seven days a week. It will surely be a competitive move for the other banks.
The bank has 44 branches and there would be 3 more by March 31. The long-term goal of Capital Local Bank is to open 216 branches by next 5 years. The bank will concentrate on the northern part of the country. Currently, it is functioning in Punjab’s five districts, Jalandhar, Hoshiarpur, Kapurthala, Ludhiana, and Amritsar.
Till now, it worked as a local bank, but, now after getting a license, it can open branches across India.