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RBI to issue Small finance bank licences in September

Published by Metro India News Online on August 20, 2015 19:17:23 PM

Reserve Bank of India on Thursday said it will announce small finance bank licences in September and allayed concerns that these new entities can pose any threat to existing banks.

RBI Governor Raghuram Rajan said, “New payments banks would not pose any competitive threat to the existing banks and these new entities would rather serve as 'feeder' for the universal banks.”

India’s Central bank had received 72 small finance bank licences applications and 41 payment bank licences applications.

Out of these, RBI has given in-principle approval for 11 payments banks which include Aditya Birla Nuvo, Reliance Industries, Tech Mahindra, Vodafone, and Airtel.

DHFL, Lulu Forex, IIFL Holdings, UAE Exchange, SKS Microfinance, and Ujjivan Financial are among those who have filed the application for the small finance banks.

"I've no doubt banking will become very competitive and universal banks have to provide full service to retain customers," Rajan said at the conference organised by SBI.