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RBI doubles minimum capital requirement to Rs 200 crore for SFBs
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The Reserve Bank of India (RBI) has raised the minimum capital requirement for small finance banks (SFBs) to Rs 200 crore and permitted Payments Bank to upgrade as SFBs. Incidentally, the net worth of all SFBs currently in operation is in excess of Rs 200 crore.
Issuing the revised guidelines, the RBI said that for Primary (Urban) Co-operative Banks (UCBs) desirous of voluntarily transiting into SFBs, the initial requirement of net worth would be at Rs 100 crore, which will have to be increased to Rs 200 crore within five years from the date of commencement of business.
It stated Payments Banks can apply for conversion into SFB after five years of operations if they are otherwise eligible as per the guidelines. The Reserve Bank of India (RBI) last issued guidelines for licensing of small finance banks in the private sector on November 27, 2014.
