The Reserve Bank of India has officially approved the merger between Fincare Small Finance Bank and AU Small Finance Bank. The merger is set to take effect on April 1, 2024. This decision was made under the authority granted by sub-section (4) of Section 44A of the Banking Regulation Act, 1949.
Starting from the effective date, all existing branches of Fincare Small Finance Bank will operate under the AU Small Finance Bank brand, expanding the latter’s network and potentially enhancing its service offerings to a broader customer base. This strategic move is anticipated to strengthen the position of AU Small Finance Bank in the competitive banking landscape.
AU Small Finance Bank, headquartered in Jaipur, Rajasthan, offers a comprehensive suite of products and services, including savings and current accounts, fixed deposits, loans (personal, vehicle, housing, gold, and business loans), and insurance products, among others. Its focus is on delivering accessible and inclusive banking solutions to underserved and unserved segments of the Indian population, leveraging technology and innovation to enhance customer experience and operational efficiency.
Established in 2017, Fincare Small Finance Bank evolved into a scheduled commercial bank, prioritizing financial inclusion. It was granted a licence by the RBI to operate as a small finance bank in 2017, following a successful stint as a microfinance institution.
