Mumbai, Sept. 20 -- The Reserve Bank of India (RBI) on Friday, 13 September, allowed payments banks to apply for small finance bank (SFB) licences, provided they meet the criteria. According to the new draft guidelines for on-tap licencing of private sector SFBs, the promoter of a payments bank is eligible to set up an SFB, provided both banks come under the non-operating financial holding company (NOFHC) structure. Existing rules do not allow payments banks to lend and deposits are capped at 1 lakh per customer. A small finance bank licence will give such entities access to more deposits and boost their profitability, which is currently under pressure. The central bank also revised the minimum paid-up capital requirement for SFBs to '200 c...