Ujjivan Financial Services figures amongst the top five gainers on the BSE, going up 6.5% to Rs.346 and remains firmly in the green.
The market is thrilled that the company’s subsidiary, Ujjivan Small Finance Bank, has been granted “scheduled bank” status by the RBI.
Scheduled banks are all the private, foreign and nationalised banks operating in India. However, cooperative banks are allowed to seek scheduled bank status if they satisfy certain criteria. They are eligible for loans from the RBI at bank rate and also given membership to clearing houses.
Non-scheduled banks do not come under the control of RBI. They are mostly private firms, registered companies etc which undertake financial dealings.
Thus in simple language, it means that Ujjivan’s subsidiary is all set to become a private sector bank.