You are here: Home » Finance » News » Banks
Business Standard

RBI grants small finance banks licence to 10 entities

Approval granted by RBI will be valid for a period of 18 months

BS Reporter  |  Mumbai 

RBI grants small finance banks lincence to ten entities

Reserve Bank of India has granted in-principle licence for small to ten entities.

The name of the applicants that have been granted the licence include- Au Financiers, Capital Local Area Bank , Disha Microfin, Equitas Holdings, ESAF Microfinance and Investments, Janalakshmi Financial Services, RGVN (North East) Microfinance, Suryoday Micro Finance, Ujjivan Financial Services and Utkarsh Micro

The in-principle approval granted by RBI will be valid for a period of 18 months.

Small will be similar to the existing commercial lenders and will undertake basic banking activities of accepting deposits and lending to unserved and under-served sections. The maximum loan size and investment limit exposure to single and group obligators cannot be more than 10 per cent and 15 per cent of its capital funds, respectively.

Apart from this, at least 50 per cent of their loan portfolio has to include loans and advances of up to Rs 25 lakh, as per RBI regulations. 72 applicants have applied for Small Finance The regulator had also said that small banks can convert themselves into universal banks, though the transition would not be automatic and will depend on the regulator’s approval.

72 players had applied for small finance banks licence.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, September 16 2015. 18:56 IST
RECOMMENDED FOR YOU
.