RBI on Tuesday said it has finalised the operating guidelines for Small Finance Banks (SFBs) and Payments Banks and will release them this week, a move which will help applicants begin operations.
“Draft operating guidelines were discussed with the applicants who had received in-principle nods. Based on their comments, operating guidelines have been finalised and will be issued this week,” the RBI said in its fourth bi-monthly monetary policy review.
Draft guidelines were issued for SFBs and Payment Banks after in-principle nods were granted to 11 applicants to set up payments banks (PBs) and 10 applicants to set up SFBs in the private sector in August 2015 and September 2015, respectively.
Banking licences were granted to three entities to commence small finance bank business, and to one entity to begin payments bank business.Two of the three small finance banks have commenced operations, it said. Payments banks allow mobile firms, supermarket chains, and others to cater to individuals and small businesses.