InvestorQ : Who is allowed to apply for a small finance bank?
Shreya Mashelkar made post

Who is allowed to apply for a small finance bank?

Answer
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simran Kaur answered.
1 year ago


The Reserve Bank of India, in 2014, took applications from companies and entities for small finance banks. The promoters who were deemed eligible are:

- Resident individuals/professionals with 10 years of experience in banking and finance; and companies and societies owned and controlled by residents will be eligible to set up small finance banks.

- Existing Non-Banking Finance Companies (NBFCs), Micro Finance Institutions (MFIs), and Local Area Banks (LABs) that are owned and controlled by residents can also opt for conversion into small finance banks.

- Promoter/promoter groups should be ‘fit and proper’ with a sound track record of professional experience or of running their businesses for at least a period of five years in order to be eligible to promote small finance banks.