Small & payment banks may get RBI licences by year-end

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RBIThe Reserve Bank is expecting to issue small and payment banks licences by year-end, central bank Deputy Governor SS Mundra said.

“The work is in progress and hopefully both should happen in the course of this calendar year,” Mundra said.

Introducing a new concept of niche banking in India, RBI has issued final norms for payment banks and small finance banks that would allow mobile firms and supermarket chains, among others, to enter the banking arena to cater to individuals and small businesses. It isaimed at deepening financial inclusion and boost saving habits.

As per the guidelines, those interested to set up these two new categories of banks would need minimum Rs 100 crore of capital and fulfil the necessary ‘fit and proper’ criteria, among other conditions.

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