Banks could end up beholden to online platforms with reach

Source: This post is based on the article “Banks could end up beholden to online platforms with reach” published in Livemint on 30th August 2021. Relevance: Disruption in the banking sector by tech giants. Synopsis: Deposit mobilization through Big Tech apps might weaken banks. What has happened? According to a press release, Equitas Small Finance… Continue reading Banks could end up beholden to online platforms with reach

RBI panel suggests umbrella body for helping smaller UCBs scale up

Source: Business Standard and Livemint What is the News? The Reserve Bank of India(RBI) has released the report of the Expert Committee on Primary Urban Co-operative Banks(UCBs).  About the Expert Committee on UCBs: The committee was set up under the chairmanship of former RBI deputy governor N.S. Vishwanathan. Mandate: To examine the issues and to… Continue reading RBI panel suggests umbrella body for helping smaller UCBs scale up

The silent rise of Small Finance Banks (SFBs)

Source: Live Mint Relevance: Financial inclusion and measures taken by RBI Synopsis: Challenges faced by SFBs and Criticism against them Background SFBs have grown rapidly since RBI first carved out this category half a decade ago in Indian financial system. In Financial Year (FY) 2018 – 2020, SFBs registered a phenomenal growth by doubling the… Continue reading The silent rise of Small Finance Banks (SFBs)

RBI lays down guidelines for payments banks’ SFB licence

News:The Reserve Bank of India has released final Guidelines for the ‘on tap’ Licencing for Small Finance Banks(SFBs). Facts: About the Guidelines for ‘on-tap’ Licencing: The minimum paid-up voting equity capital / capital requirement shall be Rs 200 crores. For Primary (Urban) Co-operative Banks (UCBs), who voluntarily wants to transition into SFBs initial requirement of… Continue reading RBI lays down guidelines for payments banks’ SFB licence

RBI raises cap on home loans by SFBs, RRBs

The Reserve Bank of India has decided to increase the housing loan limits for Regional Rural Banks(RRBs) and Small Finance Banks(SFBs). Further,all such loans will be classified by these banks as priority sector loans. The eligibility cap has been increased to ₹35 lakh in metropolitan areas and ₹25 lakh in other centres provided the overall… Continue reading RBI raises cap on home loans by SFBs, RRBs