In 2014, Bandhan Financial Services, microlender with Headquarters at ______, was granted in - principal approval by RBI to start a universal bank.
Kolkata
Let's analyze the question regarding Bandhan Financial Services and its headquarters when it received in-principle approval from the Reserve Bank of India (RBI) in 2014 to become a universal bank.
Understanding Bandhan Financial Services and RBI Approval
Bandhan Financial Services was a microfinance institution before it transitioned into a bank. In 2014, the Reserve Bank of India (RBI) decided to issue new bank licenses after a gap of several years. This was a significant step towards increasing financial inclusion in India. Bandhan Financial Services was one of the entities that applied for this license.
Headquarters Location of Bandhan Financial Services
At the time of applying for and receiving the in-principle approval for a universal bank license in 2014, Bandhan Financial Services had its headquarters located in Kolkata.
Let's look at the options provided:
- Kolkata
- Mumbai
- Pune
- Lucknow
Based on the information about Bandhan Financial Services, its headquarters was indeed in Kolkata when it received the RBI's approval to start a universal bank.
Significance of Universal Bank License
Receiving a universal bank license from the RBI allows an entity to perform a wide range of banking activities, including accepting deposits from the public, lending money, offering various financial products, and operating a network of branches. This is a major upgrade from being just a microfinance institution.
Bandhan Bank's Journey
Following the in-principle approval in 2014, Bandhan Financial Services worked towards fulfilling all regulatory requirements. Bandhan Bank was officially launched on August 23, 2015, starting operations as a scheduled commercial bank. Its headquarters continues to be in Kolkata.
Therefore, the headquarters of Bandhan Financial Services, when it received RBI approval in 2014, was Kolkata.
Revision Table: Key Facts about Bandhan Bank and RBI Approval
| Detail | Information |
|---|---|
| Entity | Bandhan Financial Services (now Bandhan Bank) |
| Event | Received in-principle approval for Universal Bank license |
| Year of Approval | 2014 |
| Regulatory Authority | Reserve Bank of India (RBI) |
| Headquarters Location (at the time of approval) | Kolkata |
| Bank Launch Year | 2015 |
Additional Information: RBI Banking Licenses
The RBI is responsible for regulating the banking sector in India. It grants licenses for different types of banks, including universal banks, small finance banks, and payments banks. The process for granting universal bank licenses is rigorous and considers various factors like financial track record, corporate governance, business plan, and contribution to financial inclusion.
Entities like Bandhan Financial Services that have a strong track record in serving financially excluded populations are often encouraged to transition into banks to deepen financial penetration.
Important Questions from Bank Headquarters
In which of the following states is the headquarters of IDBI (Industrial Development Bank of India) located?
________ is a microfinance organisation and community development bank founded in Bangladesh which makes small loans to the impoverished without requiring collateral.
As of 2020, in which of the following cities is the headquarters of Axis Bank located?
The Headquarters of RBI is located in ______.
Which among the following is the oldest public sector bank in India?
