Conversion into small finance banks (SFB) would actually prove detrimental for listed non-banking financial companies (NBFCs) and microfinance institutions (MFIs) in terms of their net interest income (NII) in the initial years. Analysts feel NII of SFBs like Ujjivan Financial Services, Disha Microfin and Equitas may gradually fall from current 47.8 per cent to 27.5 … Read More →
RBI Issues Operating Guidelines For Payment Banks, Small Finance Banks RBI came out with operating guidelines for differentiated banks — payments banks and small finance banks — being set up to bring in new players who would leverage on technology for financial inclusion in a cost effective manner. RBI granted in-principle approvals to 11 entities … Read More →
Subramanian Swamy for CBI probe into grant of small finance bank licenses Alleging flouting of its own rules by RBI in grant of 10 small finance bank licences, BJP leader Subramanian Swamy on Wednesday asked Prime Minister Narendra Modi to order a CBI-led probe into the matter. Seeking action against RBI officials, including Governor Raghuram … Read More →
What are Small Finance Banks? Small finance banks will be permitted to take deposits from customers. Furthermore, as against payments banks, small finance banks will likewise be permitted to loan cash to individuals. Large number of the entities that have received the ‘in-principle’ nod include micro-finance organizations. Which implies, most customers of small finance banks … Read More →
The following table gives a crisp overview of small finance banks and Payment banks. Difference Small Bank Payments Bank Eligibility Professionals with 10 years in financial services or promoter group with 5 year track record Card Issuers, Finance Companies, Business Correspondents, Telecom Companies, Retailers etc. Capital Requirement Rs. 100 Crore Equity Capital Rs. 100 Crore … Read More →
Guidelines for Licensing: 1. Registration, licensing and regulations The small finance bank shall be registered as a public limited company under the Companies Act, 2013. It will be licensed under Section 22 of the Banking Regulation Act, 1949 and governed by the provisions of the Banking Regulation Act, 1949; Reserve Bank of India Act, 1934; … Read More →