Category : Economy & Banking
 The Reserve Bank of India released guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector. Now payments banks willing to convert themselves into small finance banks (SFBs) can apply for such a licence only after 5 years of operations. Existing payments banks (PBs), which are controlled by residents and have completed five years of operations, are also eligible for conversion into small finance banks after complying with all legal and regulatory requirements of various authorities and if they conform to these guidelines. The licensing window will be open on-tap. The minimum capital for setting up an SFB has been mandated at Rs. 200 crores, adding for primary (urban) co-operative banks (UCBs), which wish to become SFBs, the initial requirement of net worth will be Rs. 100 crores, which will have to be increased to Rs. 200 crores within five years from the date of commencement of business. SFBs will be given scheduled bank status immediately upon commencement of operations. |
| Source: The Reserve Bank of India |
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