India, Oct. 28 -- The Reserve Bank of India (RBI) has released the "Guidelines for 'on tap' Licensing of Small Finance Banks (SFBs) in the Private Sector" on its website, introducing key updates to the framework first issued on November 27, 2014.
Under the revised guidelines, the licensing window for SFBs will remain open on a continuous, or "on-tap," basis. The minimum paid-up voting equity capital or net worth requirement for new SFBs has been set at Rs 200 crore. For Primary (Urban) Co-operative Banks (UCBs) wishing to voluntarily transition into SFBs, the initial net worth requirement will be Rs 100 crore, to be raised to Rs 200 crore within five years of commencing operations.
Among other major changes, SFBs will now receive schedule...