On-tap licence regime: RBI doubles SFB net worth floor to Rs 200 crore

RBI has stated that the key criteria for licences will be the entity's ability to serve smaller customers

The Reserve Bank of India’s (RBI’s) new draft guidelines for on-tap licensing of small finance banks (SFBs) said the minimum net worth of such banks should be doubled from Rs 100 crore to Rs 200 crore and that the promoters’ stake be brought down to a maximum of 15 per cent within 15 years, as against the existing norm of 26 per cent within 12 years, from the date of commencement of business of the bank.

Aligning the norms with those of universal banks, the RBI said promoters wishing to set up an SFB could do so either as a standalone