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RBI panel recommends banking overhaul: Relaxation for SFBs, payments banks

Payments banks can convert into SFBs with 3 years' experience instead of 5, recommends RBI panel

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The RBI has granted licences to seven payments banks to date. But one surrendered its licence this year.

3 min read Last Updated : Nov 21 2020 | 12:12 AM IST

Payments banks that intend to convert into small finance banks can do so with three years’ experience rather than five, according to the recommendations of a working group of the Reserve Bank of India (RBI).

This relaxation, if accepted, may open the door for payments banks that wish to convert. Paytm, IndiaPost, and Fino Payments may benefit from this relaxation.

The RBI has granted licences to seven payments banks to date. But one surrendered its licence this year.

Meanwhile, the working group has recommended an increase in the initial paid-up voting equity share capital/net worth required to set up a small finance bank

Topics : Reserve Bank of India Small Finance Banks payments app

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