Updated: December 6, 2019 4:17:06 am
The RBI on Thursday opened the on-tap licensing window for small finance banks (SFBs), stating that the minimum paid-up voting equity capital/net worth requirement will be Rs 200 crore.
However, for primary urban co-operative banks (UCBs) desirous of voluntarily transiting into SFBs, the initial requirement of net worth will be at Rs 100 crore, which will have to be increased to Rs 200 crore within five years from the date of commencement of business, the RBI said while issuing the final guidelines for SFBs.
Incidentally, the net-worth of all SFBs currently in operation is in excess of Rs 200 crore. “SFBs will be given scheduled bank status immediately upon commencement of operations. SFBs will have general permission to open banking outlets from the date of commencement of operations,” the RBI said. Payments banks can apply for conversion into SFB after five years of operations, if they are otherwise eligible as per these guidelines, the central bank said.
The promoters should hold a minimum of 40 per cent of the paid-up voting equity of the bank at all times…