RBI granted in-principle license to how many entities?

Q.  Reserve Bank of India (RBI) recently granted an in-principle license to ________ entities for setting up small finance banks.
- Published on 17 Feb 17

a. 11
b. 10
c. 12
d. 2

ANSWER: 10
 
The Reserve Bank of India (RBI) recently granted an in-principle nod to 10 entities for setting up small finance banks.

The 10 entities that received the nod for small banks include -
  • Au Financiers (Jaipur)
  • Capital Local Area Bank (Jalandhar)
  • Disha Microfin (Ahmedabad)
  • Equitas Holdings (Chennai)
  • ESAF Microfinance and Investments (Chennai)
  • Janalakshmi Financial Services (Bengaluru)
  • RGVN (Northeast) Microfinance (Guwahati)
  • Suryoday Micro Finance (Navi Mumbai)
  • Ujjivan Financial Services (Bengaluru)
  • Utkarsh Micro Finance (Varanasi)
In a way, there are like commercial banks because both provide the saving and lending facility, however, small banks must follow stricter regulations as proposed by RBI.
  • 75% of its Adjusted Net Bank Credit (ANBC) should be advanced to the priority sector.
  • Maximum loan size to a single person cannot exceed 10% of total capital funds; cannot exceed 15% in the case of a group.
  • Minimum paid-up equity capital requirement of Rs 100 crore.
  • A fundamental requirement is that it must have 25% of its branches set up in unbanked areas.

Post your comment / Share knowledge


Enter the code shown above:
 
(Note: If you cannot read the numbers in the above image, reload the page to generate a new one.)