RBI to issue final norms on small and payments banks

Wednesday 17 September 2014 00:17 CET | News

The Reserve Bank (RBI) has revealed plans to issue final guidelines on small and payments banks, allowing corporates to enter these two segments.

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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Keywords: RBI, final norms, small, payments , banks, micro finance institutions, online, banking
Categories: Banking & Fintech
Countries: World
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Banking & Fintech

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