TNPSC Thervupettagam

Guidelines for Licencing of Small Finance Banks

December 12 , 2019 1785 days 1393 0
  • Reserve Bank of India has released final Guidelines for ‘on tap’ Licencing for Small Finance Banks (SFBs).
  • RBI had issued in-principle approval to ten applicants for SFB in 2015.
  • An “on-tap” facility would mean the RBI will accept applications and grant licences for banks throughout the year.

Guidelines

  • Capital requirement: The minimum paid-up voting equity capital / net worth requirement shall be 200 crores.
  • Scheduled bank status to SFBs: SFBs will be given scheduled bank status immediately upon commencement of operations.
  • Payments Banks conversion to SFBs: The payment banks can apply for conversion into SFB after 5 years of operations.

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