Small Finance Bank License and Registration — MUDS
MUDS LogoMUDS Retina Logo
  • |
  • +91 9599653306|
  • [email protected]
  • Start A Business
    • Business Registrations
      • Private/Public Company Registrations
      • Limited Liability Partnerships Registrations
      • One Person Company Registrations
      • Partnership Firms Registrations
      • Sole Proprietorships Registrations
      • Producer Company Registrations
      • Global Business Set-Up
      • Nidhi Company Registrations
    • NGO & Government Registrations
      • Tax Registration & Licences: IEC/GST
      • Tax Registration and Licenses: ESI/PF
      • Tax Registration & License: FSSAI
      • Formation of Section 8 Company(NGO)
      • Society/Trust/RWA
  • Micro Financing & NBFC
    • Setting up Micro-Finance Business
    • Setting up NBFC
    • Peer to Peer (P2P) Lending Business in India
    • Core Investment Company
    • Venture Capital Fund Registration
    • Small Finance Bank License
    • Payment Finance Bank
    • Prepaid Wallet Business
    • Full Fledged Money Changers license
    • IRDA Insurance License
    • Setting up of Nidhi Company
  • Legal & Regulatory Services
    • Insolvency
      • Liquidator
      • Insolvency Resolution Professional
      • Voluntary Liquidation Services
      • Due Diligence of Corporate Debtor
      • Recovery of Financial and Operational Debt through Insolvency
      • Advising and Assisting Resolution Professionals in Resolution Process Management
      • Planning and Strategy Making Relating to Insolvency Resolution
      • Handling & Managing Litigations Relating To Insolvency Resolution Process
      • Formulation & Implementation of Resolution Plans and Control Transition Support
    • Mergers & Acquisition
      • Merger and Amalgamation
      • Demergers
      • Cross-Border Transactions
      • Winding Up
    • Compliance & Litigation
      • Removal of Directors Disqualification
      • Your Trusted India Expert For Establishing Your Business In India
      • ESOP Management
      • POSH
      • POSH Case Advisory
      • Corporate Social Responsibility
      • Corporate Law Litigation
      • ICC Members Training & Certification
    • Capital Markets & Listing
      • IPO/FPO (Public Issue)
      • FCCBs/ADRs/GDRs
      • SME Listing
      • Takeover Management
      • REIT ( Real Estate Investment Trust )
      • Venture Capital Fund Registration
  • Newsletters
    • Blog
    • NBFC
    • Directors Disqualification
    • Insolvency & NCLT
    • Corporate Laws

Small Finance Bank License

  • Assistance for obtaining Small Finance Bank License from RBI
  • All regulatory and business enquiries are resolved on priority basis
  • Compliance Management and business plans for new small finance banks
  • All procedural requirements to get small finance bank registration
  • Guidance on regulatory norms for new Small Finance Bank
  • Explanation on Small finance bank license requirement for new business
REQUEST A CALL BACK

    captcha

    Enter the code above here *

    Under Companies Act 2013,Small Finance Banks are registered as public limited company and are licensed under section 22 of the Banking Regulation,1949 and primarily governed by Banking Regulation Act,1949 and RBI Act,1934. Small Finance Banks were introduced with the purpose to serve rural and semi-urban areas like small businesses, unorganized areas, etc. They make money by collecting it from current and saving account depositors, fixed depositors, etc. Every small finance banks needs approval from RBI before opening of any new branch. It should extend 75% of its ANBC to the classified sectors under PSL by the RBI.

    Objectives

    • Provide framework to promote rural and semi-urban savings
    • Provide credit in local areas to carry out economic activities
    • Provide saving vehicles to the underprivileged sections of the society
    • By using hi-tech, low-cost technology, supply of credit to small businesses

    Eligibility Criteria for Banks

    • Min. Paid Up Capital Rs. 100 Crores
    • Promoters min. Initial contribution to above 40%(to be bought to 26% within 12 years of commencement)
    • Foreign Shareholding as per FDI policy for private banks
    • Subjected to all prudential norms and regulations of commercial banks
    • Extend 75% of ANBC to the sectors classified as PSL
    • At least 50% of its loan portfolio should constitute of loan and advances upto 25 lakhs
    Document Required
    Document Requirement for SFBs
    • As per Rule 11 of the Banking Regulation (Companies) Rules, 1949, applications had to be submitted in the prescribed form (Form III) to — The Chief General Manager — Department of Banking Regulation — Reserve Bank of India, 13th Floor, Central Office Building, Mumbai – 400 001.
    • Additionally,the applicants should furnish the business plan and other requisite information as prescribed.
    • Applications were to be accepted till the close of business as on January 16, 2015.
    • After experience with SFBs, applications would be received on a continuous basis.
    • However, these guidelines are subjected to periodic review and revision by the RBI
    Get In Touch With Us

      captcha

      Enter the code above here *

      Rules and Regulations

      • Undertake basic banking services to underprivileged section of the society
      • Provide banking facilities to boost savings
      • Target small business units through hi-tech, low-cost operations
      • Established as public limited company promoted by either individuals, corporate, trust/societies.
      • Governed by RBI Act 1934, Banking Regulation Act 1949, etc.
      • Considered as non-scheduled banks.

       

      Key Challenges Faced

      • Difficulty to maintain ideal technology platform
      • Naive to handle deposits
      • Huge amount required to invest in infrastructure
      • Reduced earning initially to maintain ratios like CRR,SLR etc

       

      Frequently Asked Questions on Small Finance Bank License
      Can a promoter of large business/industrial house act as promoter to from small banks?

      No, a promoter of large business/industrial house cannot be promoter of small banks

      Is there any cap on interest for deposits and advances?

      SFBs are subjected to all the stated regulations by the RBI as well as those exist for commercial banks.

      Is there any particular number of branches that are eligible to receive license for SFBs?

      No, there is no cap on the number of branches that can receive license to be SFBs.

      SCHEDULE YOUR CONSULTATION TODAY
      Alternately Call our Legal Expert Now For Free Consultation at +91 9599653306
      Compare your Options
      Particulars
      Payment Banks
      Small Finance Banks
      Objective
      To provide small saving accounts and payment/ remittance services to migrant labour force and low income households
      To provide financial inclusion and supply of credit to small business units and farmers through high technology and low cost operations.
      Type of deposits
      Only current and saving accounts
      All types of accounts
      Promoters Contribution
      Initially 40% which is to be lowered to 26% in 12 years
      Should retain 40% in first five years.
      Target Audience
      Poor People
      MSME’s, Businessmen
      Provide Loans
      No
      Yes
      Our Satisfied Projects

      Clients +

      0

      Projects +

      0

      Success +

      0
      Testimonials

      Thanks Muds Team for their all round support in successful delivery of services. Their approach is Client Centric and they possess the deep understanding of the Subject

      Devender Agarwal
      Founder Rgyan

      Their Professional Approach blended with personal touch eases out all hassals in the Transaction.

      Tanwir Alam
      Founder Fincart

      We have been working with Muds since 4 years and their service is dependable. I highly recommend Muds in every facets of Business for the hassal free sleep.

      Amita Gupta
      Company Secretary - Hines
      As Trusted by
      aditsh
      rezbob
      landmark
      kpmg
      hitachi
      fincart
      himes
      faicent
      Transform your Business. Subscribe our Newsletter.
      [newsletters_subscribe form=1]

      Address

      A-60, 2nd Floor, Sanjay Gram, Opposite Sector-14, Gurgaon-122001
      Phone No : +91- 9599653306
      E-mail : [email protected]

      Company

      • Who We Are
      • What We Do
      • Where We Work
      • Careers
      • Contact Us
      • Blog
      • Privacy Policy

      Services

      • Incorporation/ Business Setup
      • Micro Financing and NBFCs
      • Capital Markets & Listing
      • Compliance & Litigation
      • Mergers & Acquisition
      • Insolvency

      Popular Services

      • Company Registration In India
      • Employee Stock Ownership Plan or ESOP
      • NBFC Registration
      • SME IPO
      • Recovery Operational Debt Insolvency
      • Revival of Struck off Companies
      • Removal of Directors Disqualification

      Social

      LinkedinFacebookTwitter Instagram
      ©  2018    |   All Rights Reserved
      E N Q U I R Y
      get a quote

        captcha

        Enter the code above here *

        SUBSCRIBE To OUR NEWSLETTER
        Subscribe our Newsletter



          Enter the code above here *

          X
          SCHEDULE YOUR CONSALUTATION TODAY

            captcha
            Enter the code above here *