On September 16, 2015, Reserve Bank of India awarded the “In-principle approval” to set up Small Finance Bank (SFB) to 10 Financial Institutions, including RGVN (North East) Micro Finance Limited, the same can be viewed here at https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=35010. The only institution from North-Eastern state of India to receive this recognition to establish Small Finance Bank. The main objective behind setting up small finance bank by RBI was to drive the objective of financial inclusion by making provision of savings and to provide credit to small business units, small and marginal farmers, micro and small industries and other unorganized sector entities, through high-end technology, low cost operations.
As on March 31, 2017, operating with 131 branches spread across the six North Eastern States of Arunachal, Assam, Meghalaya, Nagaland, Tripura and Sikkim touching and improving the lives of 2,91,552 clients with a portfolio outstanding of Rs. 488 crores, an increase of 112% over the last previous financial year.
Currently, RGVN (North East) Microfinance Limited is a promoting entity of North East Small Finance bank Limited (“wholly Owned Subsidiary”) to establish and commence the banking business of “Small Finance bank”. Further, all the lending activities of the RGVN (North East) Microfinance Limited have been folded into the North East Small Finance Bank Limited before the date of commencement of the Banking Business under Small Finance Bank and thereafter RGVN shall be registered as an NBFC-Core Investment Company to meet the stipulations conferred under the Licensing conditions.