RBI may issue final norms on small, payments banks in three months

The Reserve Bank is likely to issue final guidelines on small and payments banks within 2-3 months, paving the way for corporates to enter these two segments.

The final guidelines on small and payments banks are expected in the next 2-3 months, sources said.

Draft guidelines for small and payments banks were issued by the RBI in July and comments were invited till 28 August. It is examining the suggestions received and is in the process of finalising the norms for such banks, sources said. 

The final norms will allow micro finance institutions, telecom players, non-banking finance companies (NBFCs) and public sector companies eligible to apply for bank licences 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.

‘Both payments banks and small banks are 'niche' or 'differentiated' banks, with the common objective of furthering financial inclusion,’ the RBI had said.