New Delhi, Dec. 7 -- The Reserve Bank of India on Thursday issued guidelines for 'on tap' licensing for 'Small Finance Banks in the Private Sector' and set a minimum net worth of Rs 200 crore to set up such entities.
A small finance bank undertakes basic banking activities of accepting deposits and lending to unserved and underserved sections, including small business units, small and marginal farmers, micro and small industries and unorganised sector entities.
The licensing window will be open 'on-tap' basis with a minimum paid-up voting equity capital or net worth requirement shall of Rs 200 crore.
"For Primary (Urban) Co-operative Banks (UCBs), desirous of voluntarily transiting into Small Finance Banks (SFBs), initial requirement of ...