New Delhi: The Reserve Bank of India (RBI) has officially approved the merger between Fincare Small Finance Bank and AU Small Finance Bank. This merger, set to take effect on April 1, 2024, will see all branches of Fincare Small Finance Bank operating as part of AU Small Finance Bank.

The approval from RBI follows the nod given by the Competition Commission of India (CCI) over a month ago. According to CCI, the merger involves Fincare and AU, with AU becoming the merged entity. Shareholders of Fincare will receive shares in the combined entity after the proposed combination.

AU Small Finance Bank, headquartered in Jaipur, specializes in personal and commercial banking services, including deposits, loans, digital banking, and more. Additionally, the bank is licensed for foreign exchange transactions and engages in ancillary functions such as distributing insurance and investment products.

Meanwhile, Fincare, as a banking company, focuses on deposit services (savings, current accounts, fixed deposits), lending services (retail and microfinance loans), and digital banking. The company also offers miscellaneous services, such as the distribution of insurance products.