RBI Guidelines for Small Finance Bank license - 14.09.2019
14 Sep, 2019
14 Sep, 2019
(i) The RBI yesterday have formed draft guidelines for Small Finance Bank(SFB).
(ii) The Payment bank can now apply license for SFB if it has a Net-Worth of 200 Cr.
" This is good news for Fino-Payment Bank as they can now apply for SFB license. This will give them a lot of opportunities to work with which is lacking in the payment bank. For example, Payment Bank can't lend, and they can't have deposit more than 1 lakh. With SFBs license such limitation won't apply ".
(iii) Once they get license, Promoters' stake in SFBs should be brought down to 15% in 15 years.
(iv) SFBs have to mandatorily list within 3 years of net worth reaching ~500 crores.
(v) SFBs can distribute third-party financial products only after 3 years of operation.
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