Correct Answer : Reserve Bank of India
Equitas Small Finance Bank and the parent Equitas Holdings Ltd on Friday(6th May 2022) said that the Reserve Bank of India has given its no-objection to their proposal of amalgamation, subject to conditions.
"We would like to inform that RBI in its letter dated May 6, 2022 has conveyed its no-objection to our proposal for voluntary amalgamation of EHL (Equitas Holdings Ltd) with ESFB (Equitas Small Finance Bank)," they said in their stock exchange filings.
The RBI no-objection comes with conditions.
The merger is being effected to comply with the RBI norms on small finance banks, mandating the promoter to reduce the stake in the subsidiary to
40 per cent within five years of commencement of operations by the
SFB (Small Finance Bank).
Source : Business Standard
