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IDFC announced that the Reserve Bank of India, on 23 July 2015, granted Banking Licence to "IDFC BANK" for undertaking banking business in India under Section 22 (1) of the Banking Regulation Act, 1949.
Point No, III (7) of the Terms and Conditions of the Bank Licence states the following -
- The transfer of business of IDFC to the proposed bank should coincide with commencement of banking business. Auditor's certificate certifying transfer of business as on the date of commencement of operations of the bank should be submitted to RBI.
In view of the above and in view of Clause 5.8.1 of the Demerger Scheme, the Board of Directors of IDFC and IDFC Bank at their meetings held on 30 July 2015 and 27 July 2015 respectively, have determined that the Demerger Scheme can be Effective only upon receipt of requisite Operational Licenses from the Reserve Bank of India and IDFC Bank will commence the banking business from 01 October 2015.
Therefore in compliance with Clause 5.8.1 of the Demerger Scheme and to comply with the terms and conditions of the Bank Licence, the transfer of "Financing Undertaking” from IDFC to IDFC Bank pursuant to the Demerger Scheme will take place on 01 October 2015.
As a result, the Effective Date of the Demerger Scheme will be 01 October 2015 and IDFC Bank will start banking operations from 01 October 2015.
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