2014-01-09

RBI calls for differentiated banks for small businesses

A panel set up by the Reserve Bank of India has called for establishing differentiated lenders, including one for small businesses and low-income households.

RBI calls for differentiated banks for small businesses

A panel set up by the Reserve Bank of India (RBI) has called for establishing differentiated lenders, including one for small businesses and low-income households.

 

As per a report released by the panel on financial inclusion recently, it said that the bank for small businesses, called the 'payments banks', will focus on providing primary services to the people.

 

"Given that their primary role is to provide payment services and deposit products to small businesses and low- income households, they will be restricted to holding a maximum balance of Rs. 50,000 per customer," the report by the Committee on Comprehensive Financial Services for Small Businesses and Low Income Households said.

 

The multi-member panel is led by ex-ICICI Bank executive director Nachiket Mor.

 

It said payments banks shall have a minimum capital requirement of Rs. 50 crore and maintained that existing lenders should be allowed to have payments banks as a subsidiary.

 

The panel suggested a slew of dedicated banks to be formed, including the 'wholesale banks' which will lend big amounts but should not rise over Rs. 5 crore from a single depositor.

 

The report suggested a bank dedicated to funding infrastructure projects. This comes in the backdrop of projection that infrastructure sector would require an investment of $1 trillion during the 12th Plan (2012-17).

 

At present, the country has a universal banking system wherein lenders serve all the needs. However, there have been a lot of issues due to which the idea of differentiated banking has been gaining ground.

 

The RBI, in a paper on 'banking structure' released last August, also spoke of moving away from the universal banking approach.

 

Some analysts feel RBI may start the process of differentiated licensing with the current round of banking applications itself.

Related opportunities
  • Pathological Labs
    Thyrocare was founded in the year 1996 and is the..
    Locations looking for expansion Maharashtra
    Establishment year 1996
    Franchising Launch Date 1999
    Investment size Rs. 10000 - 50000
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater MUMBAI Maharashtra
  • Quick Service Restaurants
    Burger & Lobster: A Tale of Four Friends and Two..
    Locations looking for expansion Haryana
    Establishment year 2011
    Franchising Launch Date 2024
    Investment size Rs. 2 Cr. - 5 Cr
    Space required 350
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Faridabad Haryana
  • Diamond & Platinum Wears
    House of Rings (Auracious jewels private limited) positions itself as..
    Locations looking for expansion Delhi
    Establishment year 2008
    Franchising Launch Date 2024
    Investment size Rs. 2lakh - 5lakh
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Delhi Delhi
  • Quick Service Restaurants
    I Sandy has been a staple in the F&B industry..
    Locations looking for expansion Tamil nadu
    Establishment year 2023
    Franchising Launch Date 2024
    Investment size Rs. 10lakh - 20lakh
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Agasteeswaram Tamil nadu
Insta-Subscribe to
The Franchising World
Magazine
tfw-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts

pincode
;
ads ads ads ads