Recently, there is a buzz about BANDHAN BANK, Lets know about it:
Bandhan Bank was set up in 2001 to handle dual objective of poverty alleviation and women empowerment.
It was previously a Non - Banking Financial Company
(NBFC) butBandhan Bank received its universal banking licence
from Reserve Bank of India.
The bank rolled out its services on 23rd August, 2015 (Founded).
The bank started with 501 branches in all most 22 states in India which is highest branches of any private bank on the first day.
The bank will provide funds to help and develop the Small and Medium Enterprises (SME).
The saving interest rates have been fixed at 4.25% below Rs. 1,00,000 and 5% above Rs. 1,00,000.
It is interesting to know that Bandhan was the only micro-finance institution that applied for a banking licence.
Headquarters is located at Kolkata, West Bengal.
Slogan of bank is "Aapka Bhala, Sabki Bhalai".
Incidentally, Bandhan is the first bank to be set up in eastern part of India after Independence.
MD and CEO of bank is Chandra Shekhar Ghosh.
PAYMENT BANKS VS SMALL FINANCE BANKS
Payment banks can receive deposits and remittances, but cannot lend, focusing on migrant labour and low income households.
Small banks will lend to “unserved and under-served sections”, including small business units, small and marginal farmers, and micro and small industries.
Payment Banks
Objective
Provide small savings accounts and payments /remittance services to migrant labour workforce and low-income households
Small Finance Banks
Financial inclusion and supply of credit to small business units and farmers through high-technology and low-cost operations
Eligible Promoters
Individuals or professionals with necessary experience and eligibility, existing NBFCs, corporate banking correspondents, mobile companies, supermarket chains, real estate co-ops and corporate entities
Resident individuals or professionals with 10 years of experience in banking and finance, companies and societies owned and controlled by residents, existing NBFCs, microfinance institutions and local
area banks owned and controlled by residents