RBI makes operational guidelines for Small Finance Banks effective
Published: Jul 07, 2017
By TIOLCORP News Service
NEW DELHI, JULY 07 2017: The Reserve Bank of India (RBI) had previously decided to licence new “Small Finance Banks (SFBs)” in the private sector so as to create a framework for licensing small banks, and to give a thrust to the supply of credit to micro and small enterprises, agriculture and banking services in unbanked and under-banked regions in the country. In pursuance of the same, in-principle approvals were given to ten applicants to set up SFBs. Subsequently, Operating Guidelines for Small Finance Banks were issued, which prescribed, inter alia, broad indicative guidelines in areas related to Financial Inclusion and Development.
In continuation with the same, comprehensive set of guidelines in the form of a compendium is been released by the RBI. It was also informed that the guidelines are operational and will be effective from the date of this compendium.