The Reserve Bank of India (RBI) on April 26, 2024, issued a notification regarding the Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector.
The following has been stated namely: -
• The objectives of setting up of small finance banks will be for furthering financial inclusion by: -
o Provision of savings vehicles primarily to unserved and underserved sections of the population
o Supply of credit to small business units; small and marginal farmers; micro and small industries; and other unorganised sector entities, through high technology-low cost operations.
• Resident individuals/professionals (Indian citizens), singly or jointly, each having at least 10 years of experience in banking and finance at a senior level; and Companies and Societies in the private sector, that are owned and controlled by residents, and having successful track record of running their businesses for at least a period of five years, will be eligible as promoters to set up small finance banks
• The minimum paid-up voting equity capital for small finance banks shall be ₹ 200 cror
