RBL Bank Limited

RBL Bank Limited is a private sector bank founded in 1943 and headquartered in Mumbai. It operates 561 branches, with total assets of approximately Rs 146,772.11 crore on the latest published figures.

RBL Bank operates the smallest branch network of any private sector Member Institution on the CGSS panel, 561 branches, against total assets of about Rs 1.47 lakh crore. Founded in 1943 as Ratnakar Bank, it repositioned over the past decade from a small regional lender into a metro-focused commercial bank.

Its role in the Credit Guarantee Scheme for Startups. RBL Bank Limited is one of 40 institutions registered with the National Credit Guarantee Trustee Company as a CGSS Member Institution (NCGTC MLI ID 97, classified as a private sector bank). Member Institutions are the lenders that actually extend credit under the scheme: you borrow from RBL Bank Limited, and NCGTC guarantees RBL Bank Limited against your default. That guarantee is what allows the facility to be extended to a DPIIT-recognised startup without collateral, with cover of up to Rs 20 crore per borrower, being 85 percent of the amount in default on loans up to Rs 10 crore and 75 percent above that.

What this means in practice. The small network is not necessarily a drawback for this scheme. A CGSS application is a considered credit exercise, not a walk-in transaction, and RBL's concentration in major cities means its branches deal with business customers rather than primarily retail ones. If you are in a metro, distance is not an issue; outside one, check coverage first.

The terms are the bank's, not the scheme's. This is the point founders most often miss. CGSS fixes the guarantee, not the loan. The interest rate, tenure, moratorium, repayment schedule and how the Annual Guarantee Fee is passed through to you are all set by RBL Bank Limited under its own credit policy, and they differ materially between Member Institutions for an identical borrower. Nor does registration oblige RBL Bank Limited to lend: it appraises you on its normal credit standards first and applies the guarantee second. Approaching more than one Member Institution is almost always worth the effort.