VFS Capital Seeks Small Finance Bank Licence: A New Chapter in Indian Banking?
In a significant development, the Reserve Bank of India (RBI) has announced that it has received an application from Kolkata-based VFS Capital Ltd for a small finance bank licence under the 'on tap' licensing guidelines. This move is expected to further expand the reach of banking services in the country, particularly in the private sector. With the 'on tap' licensing guidelines, the RBI aims to promote financial inclusion and provide easier access to banking services for the unbanked and underbanked population. As a small finance bank, VFS Capital will focus on providing basic banking services, such as savings accounts, loans, and credit facilities, to small businesses, micro and small enterprises, and other unorganized sector entities. The development is a positive step towards achieving the goal of universal financial inclusion, a key priority for the Indian government. With the increasing demand for digital banking and financial services, small finance banks like VFS Capital are poised to play a vital role in bridging the financial gap in the country. Key terms like 'small finance bank', 'financial inclusion', and 'digital banking' are expected to gain traction in the coming years.
