Small Finance Bank License

Name: Muds
Address: 90, Mehrauli-Gurgaon Rd, Industrial Development Area, Sector 16, Gurgaon, 122007, IN
Telephone: 9599653306

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

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

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

Alternately Call our Legal Expert Now For Free Consultation at 09599653306

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.

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

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.