Muthoot Finance has received an approval from its board for filing of application in order to obtain a banking license pursuant to the Guidelines for Licensing of New Banks in the Private Sector dated February 22, 2013 issued by the Reserve Bank of India (RBI) to promote a bank which will be newly incorporated as a public company. The board of directors of the company at its meeting held on June 30, 2013 has approved for the same.
The board also noted that if the promoters are granted an in-principle approval under the Guidelines to promote a bank, the shareholding structure and business of the company is required to be restructured in compliance with the Guidelines within 18 months from the date of grant of in-principle approval.
Muthoot Finance is a non-deposit taking systemically important non-banking finance company (NBFC). It is primarily in the business of lending against used household gold jewellery to individuals.
