RBI to clarify on licensing norms for small & finance banks

The RBI today said it will come out with detailed clarifications for the benefit of intended applicants on newly-issued guidelines for setting up small finance and payment banks.
The RBI has been receiving queries from intending applicants seeking clarifications on these guidelines, it said in a notification.
"Considering that the clarifications sought would be of wider interest and use for all intending applicants, the Reserve Bank has decided to post the clarifications on its website," RBI said.
It said the clarifications would be posted on its website, while the identity of those raising queries would be kept confidential.
RBI had issued guidelines regarding licensing of small finance and payment banks on November 27, 2014.

The queries may be sent by December 15, 2014 to RBI.

Issuing guidelines for licensing of small finance and payment banks late last month, RBI has prescribed a minimum capital requirement of Rs 100 crore to set up the same and without any restriction on the area of operation.
"The objectives of setting up of small finance banks will be to further financial inclusion by provision of savings vehicles and supply of credit to small business units through high technology-low cost operations," the guidelines said.
These banks will initially be allowed to undertake basic banking activities of accepting deposits and lending to un-served and under-served sections including small business units, small and marginal farmers, micro- and small industries and unorganised sector entities.