RBI gives permission to ten small banks [ Current News (Concise) ]
About permission from RBI: The Reserve Bank of India granted the licences to 10 small banks for set um small finances banks. These all companies are microfinance and small finance companies. There are total of 72 companies who apply for permission from RBI.
About ten banks get licences:
- Au Financiers of Jaipur
- Capital Local Area Bank of Jalandhar
- Disha Microfin of Ahmedabad
- Equitas Holdings of Chennai
- ESAF Microfinance and Investments of Chennai
- Janalakshmi Financial Services of Bengaluru
- RGVN (Northeast) Microfinance of Guwahati
- Suryoday Micro Finance of Navi Mumbai
- Ujjivan Financial Services of Bengaluru
- Utkarsh Micro Finance of Varanasi
About work of small banks:
- The small finance bank will primarily start basic banking activities to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities.
- They can take small deposits and disburse loans.
- They can distribute mutual funds, insurance products and other simple third - party financial products.
- They can lend 75 % of their total adjusted net bank credit to priority sector.
- They can provide maximum loan size would be 10 % of capital funds to single borrower, 15 % to a group.
- They can give minimum 50 % of loans should be up to 25 lakhs.
- Published on: September 18, 2015