The final guidelines on small and payments banks are expected by the end of 2014.
The final norms will allow micro finance institutions, telecom players, non-banking finance companies (NBFCs) and public sector companies eligible to apply for bank licenses once RBI invites applications for the same.
The proposed small banks will provide a whole suite of basic banking products such as deposits and supply of credit, but in a limited area of operation.
Payments banks will offer a limited range of products such as acceptance of demand deposits and remittances of funds. They will have a network of access points particularly in remote areas, either through their own branch network or through Business Correspondents (BCs) or through networks provided by others.
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