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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

RBI, reserve bank of india
The RBI has granted licences to seven payments banks to date. But one surrendered its licence this year.

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 ...