Guidelines for Licencing of Small Finance Banks
December 12 , 2019
- 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.
- 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.