RBI receives more than 100 applicants for small & payments Banks

Reserve Bank of India today said it has received 72 applications for small finance banks and 41 applications for payment banks. Top corporate houses such as Reliance Industries Limited, Aditya Birla Group, Airtel, Vodafone and Future Group have approached the RBI to seek licences to set up small finance banks. Speaking in Mumbai at the bi-monthly monetary policy review, RBI Governor Dr. Raghuram Rajan today said that the RBI has formed two external committees to evaluate the applications received to set up these banks. 

Payment banks would be allowed payments and remittance services through various channels. However, such lenders cannot issue credit cards, or undertake lending activities. Small Finance Banks will mainly undertake basic banking activities like acceptance of deposits and lending to unserved and under-served sections. These sections will include small business units, small and marginal farmers, micro and small industries and unorganised sector entities.