RBI has issued a press release for this. According to this press release, this merger will be effective from April 1, 2024. This means that all branches of Fincare SFB will function as branches of AU SFB from April 1.

The central bank said the merger plan is one of the first such steps in the relatively new SFB sector. The Bank has been granted approval in exercise of the powers contained in sub-section (4) of Section 44A of the Banking Regulation Act 1949.

Last year, in October 2023, both the banks had announced the merger. The bank has set a target of RBI approval in February.

What will happen to the bank’s shares?

As per the agreement, shareholders of unlisted Fincare will get 579 shares of the listed AU SFB for every 2,000 shares they hold.

After the merger, FSFB shareholders will hold 9.9 per cent equity in AUSFB. After obtaining approval from RBI, the promoters of FSFB also agreed to infuse fresh capital of Rs 700 crore into the entity. When the bank announced this deal, there was uneasiness among the investors of AUSFB.

Fincare had announced that it can launch an IPO after this deal. Let us inform that after this merger, the total number of employees of AUSFB will exceed 15,000, which includes 10,000 employees in the MFI vertical.

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According to the statement issued by the Reserve Bank, under Section 45L (1) (B) of the Reserve Bank of India Act, 1934, Bajaj Finance Limited has been directed to stop the approval and distribution of loans. This order will be applicable to two loan products of Bajaj Finance – ‘Ecom’ and ‘Insta EMI Card’.

According to the Reserve Bank, the company did not follow the existing provisions of digital loan guidelines. These restrictions will be reviewed after addressing the above deficiencies and to the satisfaction of the RBI, the statement said.

Recently RBI has issued comprehensive guidelines related to IT governance and controls for banks and NBFCs. IT governance includes other management including risk management. In this regard, the Reserve Bank of India (Information Technology Governance, Risk, Control and Assurance Practices) Guidelines, 2023 has been issued. The new guidelines will come into effect from April 1, 2024. The instructions state that banks and NBFCs will create a strong IT service management framework.

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On deposits with maturities ranging from 7 days to 10 years, the bank offers an interest rate ranging from 4.50% to 9%. General public can get interest rate up to 9% on deposits of 1001 days duration. On the other hand, this interest rate is up to 9.50% for people falling in the category of senior citizens.

What are the new interest rates of the bank

Unity Small Finance Bank (Unity SFB) is offering 4.50% interest rate on FDs maturing in 7 to 14 days and 4.75% interest rate on deposits maturing in next 15 to 45 days. Unity SFB offers an interest rate of 5.25% for deposits with a tenure of 46 to 60 days and 5.50% for deposits with a tenure of 61 to 90 days.

Deposits maturing between 91 and 6 months will now fetch 5.75% interest, while deposits maturing between 6 months and 201 days will fetch 8.75% interest. As per Unity Small Finance Bank (SFB), the bank offers 6.75% interest rate on deposits maturing in 202-364 days and 7.35% interest rate on deposits maturing in 1 year to 500 days.

More than 8 percent interest will be available on FD of this period

Unity Small Finance Bank (Unity SFB) is offering an interest rate of 8.75% per annum for a tenure of 501 days. At the same time, interest will be given at the rate of 7.35% per annum on deposits of 502 days to 18 months. FDs maturing in 18 months to 1000 days get interest at the rate of 7.40%, while 9% on FDs of 1001 days. Interest is earned from The bank offers 7.65% interest rate on deposits maturing in 1002 days to 3 years, 8.25% for 3 years to 5 years and 7.00% interest rate on FDs maturing in 5 years to 10 years.

What is the interest rate for senior citizens

This bank offers 0.50% higher interest rate to senior citizens. The interest rate ranges from 4.5% to 9.50% for tenures between 7 days to 10 years.

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