• 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
  • Login
  • Register
Manifest IAS
JournalsOfIndia
Manifest Learning Academy
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
JournalsOfIndia
No Result
View All Result
Home Economy

Small Finance Banks

September 1, 2021
in Economy
Reading Time: 3 mins read
0
Small Finance Banks
165
VIEWS
Share on WhatsAppShare on TelegramShare on Facebook
image_pdfMake PDF

In news– Recently, RBI has received applications from two more entities to set up small finance banks, taking the total number of applicants to six.

Key updates-

  • Cosmea Financial Holdings Private Limited and Tally Solutions Private Limited are the applicants under the guidelines 2019 for ‘on tap’ licensing of small finance banks.
  • Previously, the RBI had received four applications under the “on-tap” SFB licensing guidelines. 
  • Those who had applied for licence for small finance banks (SFBs) were VSoft Technologies, Calicut City Service Co-operative Bank, Akhil Kumar Gupta, and Dvara Kshetriya Gramin Financial Services.
  • In April, RBI said eight institutions and individuals applied for on-tap licences to set up universal banks and small finance banks. 

Guidelines for ‘on tap’ Licensing –

  • The RBI released guidelines for ‘on tap’ Licensing of Universal Banks and Small Finance Banks(SFBs) in the Private Sector, on August 1, 2016, and December 5, 2019, respectively.
  • As per the guidelines, the initial minimum paid-up voting equity capital for a universal bank should be 500 crore. 
  • Thereafter, the bank should have a minimum net worth of Rs 500 crore at all times. 
  • The minimum paid-up voting capital/net worth for SFBs should be Rs 200 crore.
  • For primary urban co-operative banks willing to voluntarily transition into small finance banks, the initial net worth requirement is at Rs. 100 crore, which will have to be raised to Rs. 200 crore within five years from the date of commencing their business.

   Earlier this year, RBI set up a panel led by former deputy governor Shyamala Gopinath to evaluate applications for universal and small finance banks, which are mandated to focus on priority sector lending and small loans. The last time RBI handed out universal bank licences was in 2014, giving them to IDFC Ltd and Bandhan Financial Services.

About Small Finance Banks (SFB)-

   The objectives of setting up of small finance banks will be for furthering financial inclusion by provision of savings vehicles primarily to unserved and underserved sections of the population, 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.

Registration, licensing and regulations-

  • The small finance bank shall be registered as a public limited company under the Companies Act, 2013. 
  • It is licensed under Section 22 of the Banking Regulation Act, 1949 and governed by the provisions of the Banking Regulation Act, 1949; Reserve Bank of India Act, 1934; Foreign Exchange Management Act, 1999; Payment and Settlement Systems Act, 2007; Credit Information Companies (Regulation) Act, 2005; Deposit Insurance and Credit Guarantee Corporation Act, 1961.
  • The small finance banks are given scheduled bank status once they commence their operations.
  • Promoters / Promoter Groups should be ‘fit and proper’ in order to be eligible to promote small finance banks. 
  • RBI would assess the ‘fit and proper’ status of the applicants on the basis of their past record of sound credentials and integrity; financial soundness and successful track record of professional experience or of running their businesses, etc. for at least a period of five years.

Some of the operational Small Finance Banks in India are-

  1. Ujjivan Small Finance Bank.
  2. Janalakshmi Small Finance Bank.
  3. Equitas Small Finance Bank.
  4. A U Small Finance Bank.
  5. Capital Small Finance Bank.
  6. ESAF Small Finance Bank.
  7. Utkarsh Small Finance Bank.
  8. Suryoday Small Finance Bank.
  9. Fincare Small Finance Bank.
image_pdfMake PDF
Source: Live mint
Tags: News PaperPrelims

Related Posts

Ease of Doing Business (EoDB) Ranking for states

Ease of Doing Business (EoDB) Ranking for states

July 2, 2022
Pay Roll Automation for Disbursement of Monthly Allowances (PADMA)

Pay Roll Automation for Disbursement of Monthly Allowances (PADMA)

July 2, 2022
Computerisation of Primary Agricultural Credit Societies (PACS)

Computerisation of Primary Agricultural Credit Societies (PACS)

July 1, 2022
12th WTO Ministerial Conference

12th WTO Ministerial Conference

June 30, 2022
“National Highway Excellence Awards” 2021

“National Highway Excellence Awards” 2021

June 28, 2022
Global Liveability Index, 2022

Global Liveability Index, 2022

June 27, 2022
Odisha’s Mo Bus

Odisha’s Mo Bus

June 25, 2022
Payments Vision 2025

Payments Vision 2025

June 24, 2022
Twin deficit problem

Twin deficit problem

June 24, 2022
War on Drugs

War on Drugs

June 24, 2022
Please login to join discussion

Our Offline Classroom Student

PRELIMS 2021 POLITY QUESTIONS ANALYSED

https://youtu.be/5q8hBcRGhAs

PRELIMS 2021 HISTORY QUESTIONS ANALYSED

https://youtu.be/v0SIZ7SUybg

CONGRATULATIONS TO 2021 TOPPERS !!!

Rank 171 Kumar Shivashish
Rank 250 Sahithya
Rank 263 Sumit Kumar Thakur
Rank 311 Deepak Ramachandra Shet
Rank 455 Ravinandan B M

July 2022
MTWTFSS
 123
45678910
11121314151617
18192021222324
25262728293031
« Jun    

Browse by Category

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tags

AIR BBC Business Standard CNN Deccan Herald DownToEarth Down to Earth DTE Economic Times ET GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express India today Indiatoday Kurukshetra LiveMint Mains News Newspaper News Paper PIB PIB & The Hindu pre Prelims PRS India RSTV Science Reporter Survey The Hindu The Hindustan Times The India Express The Indian Express The New Indian Express Times of India TOI TOPPERS UNDP website Wikipedia Yojana
JournalsOfIndia

Our vision is to orient the readers to grasp the facts objectively and analyse critically. In the rush of reaching first to the readers, the websites miss the balanced opinion, which is the need of the hour. We aim to reach the readers with more crispness, preciseness and relevance. We bring the articles in UPSC way for the civil services aspirants and the Wisest Way for general readers.

Categories

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tag

AIR BBC Business Standard CNN Deccan Herald DownToEarth Down to Earth DTE Economic Times ET GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express India today Indiatoday Kurukshetra LiveMint Mains News Newspaper News Paper PIB PIB & The Hindu pre Prelims PRS India RSTV Science Reporter Survey The Hindu The Hindustan Times The India Express The Indian Express The New Indian Express Times of India TOI TOPPERS UNDP website Wikipedia Yojana

Newsletter

The most important UPSC news and events of the day.

Get Journals daily newsletter on your inbox.

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

  • Login
  • Sign Up
  • Home
  • SNIPPETS
  • ARTICLES
  • BROWSE
  • DOWNLOADS
No Result
View All Result

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In