KOLKATA: UK's Commonwealth Development Corporation (CDC)-backed Utkarsh Micro Finance is ready to begin its banking journey from Monday and plans to disrupt the market with higher deposit rates.As the bank, it will remove 1% loan processing fee for new borrowers to start with, while look to reduce lending rates in the future. "We have completed all the formalities last week and is ready to launch Utkarsh Small Finance Bank with five full-fledged branches," managing director Govind Singh told ET.This is the first one to launch operation after demonetisation in this small finance bank space. Utkarsh raised Rs 395 crore from local investors four months back to bring down foreign holding to below 49%, a norm for small finance banks.Utkarsh becomes the third player in this space after Capital Small Finance Bank and Equitas Small Finance Bank. Reserve Bank of India has offered in-principle license to 10 financial services companies including eight micro lenders. "It's a soft launch and we plan a mega launch in April.

Source: Economic Times January 22, 2017 13:16 UTC