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RBI issues draft guidelines for payments banks, small banks

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Reuters MUMBAI
Last Updated : Jul 17 2014 | 6:09 PM IST

MUMBAI (Reuters) - The Reserve Bank of India (RBI) on Thursday issued draft guidelines for setting up payments banks and small banks aimed at expanding banking services to small businesses and poor households.

A committee appointed by the RBI had proposed in January the formation of such banks to enhance banking services in a country where about half of the households are outside the banking system.

The central bank said the minimum capital requirement for both payments banks and small banks would be 1 billion rupees ($16.6 million), out of which promoters would have to contribute at least 40 percent while setting up the bank.

The RBI has asked for public comments on the draft rules by Aug. 28.

(Reporting by Himank Sharma; Editing by Anand Basu)

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First Published: Jul 17 2014 | 5:51 PM IST

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