News That Matters

Tag: Equitas

RBI bars Equitas from opening new branches

RBI bars Equitas from opening new branches

Finance
MUMBAI: The Reserve Bank of India (RBI) has taken action against Equitas Small Finance Bank (ESFB) for failing to meet the deadline for getting its shares listed. The central bank has barred the lender from opening any new branches and has also frozen the salary of the CEO. Equitas Bank received the final licence from the RBI in July 2016. One of the pre-conditions was that the bank would get itself listed within three years. "Listing of SFBs within three years of reaching net worth of Rs 500 crore is mandatory as outlined in the guidelines and as communicated at the time of in-principle approval," the RBI said in a letter to the bank's MD & CEO. The central bank also warned that it may impose further restrictions if the bank fails to make satisfactory progress towards listing its shar...