RBI Approves AU Bank’s Acquisition of Fincare Small Finance Bank from April 1

Current Context: The Reserve Bank of India (RBI) has approved the merger of Fincare Small Finance Bank with AU Small Finance Bank.

• The effective date of the amalgamation is set for April 1, 2024.
• As per the agreement between the two banks, shareholders of Fincare Small Finance Bank will receive 579 equity shares of AU Small Finance Bank for every 2,000 shares held.
• This acquisition will give Jaipur-headquartered AU a foothold in southern India and pave its entry into the microfinance business.
• Out of the 10 small finance banks that received a license in 2015 from RBI, AU and Capital Small Finance Bank had no microfinance legacy.
• While 49% of Fincare’s branches are based in south India, AU had merely 2%. 
• The merged bank will have 2334 branches.
• AU came into existence as a non-bank vehicle financier in 2003 before its conversion into a bank in April 2017.
• Its gross advances stood at Rs 67,624 crore at the end of December.
• All the branches of Fincare Small Finance Bank will function as branches of AU Small Finance Bank from April 1, 2024.

Question:

Q.1 When is the effective date of the amalgamation of Fincare Small Finance Bank with AU Small Finance Bank?
a. March 1, 2024
b. April 1, 2024
c. May 1, 2024
d. June 1, 2024