RBL Bank, formerly known as Ratnakar bank has today launched an exclusive branch for startups in Koramangla, Bangalore.
It is the first private bank to open a dedicated branch for startups with a staff of around 10-12 individuals including tech enthusiasts who will take care of all the startups’ banking needs.
The branch will provide services including foreign exchange services, remittances and cash management. The branch will also provide a range of value-added services including registration, legal and tax formalities etc. through its affiliates and partners.
Rajeev Ahuja, Strategy Head, RBL Bank, said, “We started working with startups 4-5 years ago. We started engaging with the technology enthusiasts to reach the unbanked population. Our engagements have always evolved with the startups and in this branch we expect to have conversations about Application Program Interface (API) banking, large volume electronic payments (IMPS/NEFT/RTGS) and receivables, prepaid cards-based solutions, escrow services, Universal Payment Interface (UPI), Aadhaar Enabled Payment System (AEPS), Direct Money Transfer (DMT) and so on.”
RBL Bank had also launched India Startup Club which focuses on need based propositions and puts emphasis on transaction based models. Under this, 112 startups are included and an additional of 70-80 startups are accessing the banking services.
RBL Bank Chairman Narayan Ramachandran, said, “At RBL, we stand at the intersection of entrepreneurs, ideas, technology and banking services. Secondly, we believe speed is what we need to converse with startups. This branch will be a tech player within the bank and the engagements will be very different.”
The bank will also help startups with working capital through Venture Debt with a maximum capital of Rs 25 crore. The Bank was an anchor investor in Trifecta Capital’s Venture Debt Fund. As part of its strategy, the Bank is also focusing on industry-wise specialists in wholesale lending, e-commerce and new-tech business.
In next 6-8 months, the banks plans to combine physical presence and technology and bring self-services which will save time for the entrepreneurs. It also plans to open more centres including in NCR, Mumbai and others.