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 17a. 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.
