SME Times News Bureau | 28 Nov, 2014
The apex bank Thursday issued final guidelines for setting
up of 'niche' or payment banks which will cater to needs of small savings
accounts, remittance services, low income households, small businesses and
other unorganised sector entities.
Under the guidelines, the Reserve Bank of India has invited individuals,
non-banking finance companies (NBFCs), corporate business correspondents (BCs),
mobile telephone companies, super-market chains, and real sector cooperatives
to apply for licence to set up payments banks.
RBI said an existing joint venture (JV) with a scheduled commercial banks can
set up a payments bank.
The guidelines said the objectives of setting up of small finance banks will be
to further financial inclusion by providing savings facilities and 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.
RBI added that the minimum paid-up equity capital for payments banks is Rs.100
crore.
"RBI will create a framework for licensing small banks and other
differentiated banks. Differentiated banks serving niche interests, local area
banks, payment banks etc. are contemplated to meet credit and remittance needs
of small businesses, unorganized sector, low income households, farmers and
migrant work force," the country's central bank said in a statement.