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The history of Shivalik Small Finance Bank (SSFB) begins with its lineage as the Shivalik Mercantile Co-operative Bank (SMCB), which was founded in 1998 as a district-level Urban Co-operative Bank (UCB). After operating as an Urban Co-operative Bank for over two decades, the institution received in-principle approval from the Reserve Bank of India (RBI) to transition to a Small Finance Bank in January 2020. The corporate entity, Shivalik Small Finance Bank Limited, was formally incorporated on July 12, 2020. The bank officially commenced operations as an SFB on April 26, 2021, and is currently registered as an active, unlisted Public Limited Company.

The significance of Shivalik Small Finance Bank in the Indian financial system is primarily derived from its unique transition. It holds the historic distinction of being the first Urban Co-operative Bank in India to successfully transition to a Small Finance Bank under the RBI’s voluntary scheme for conversion. This transition provided a new regulatory pathway for UCBs, and established SSFB as a pioneer in institutional reform. Functionally, the bank adheres to the SFB mandate, focusing on extending credit and financial services to traditionally underserved segments, including Micro, Small, and Medium Enterprises (MSMEs) and retail customers. Moreover, the institution is noted for its contemporary, technology-focused approach, utilizing a cloud-based core banking platform to enhance agility and support its mission of financial inclusion.