Small Bank And Payment Bank


 
 
Concept Explanation
 

                        Small Bank And Payment Bank

  Payment Banks Small banks
What they can do
  • Offer Internet Banking
  • Sell Mutual Funds / Insurance / Pensions
  • Offer Bill Payment Service
  • Have ATMs & BCs
  • Can function as BC of other Banks
  • Sell forex to customers
  • Sell Mutual Funds / Insurance / Pensions
  • Can convert into a full - fledged bank
  • Operate across the country
  • What they can't do
  • Offer Cridit Crads
  • Extend Loans
  • Handle Cross Remittances
  • Accept NRI Deposits
  • Grant Large Loans
  • Float subsidiaries
  • Can't sell complicated financial products
  • Eligibility Criterion
  • Issuer of Pre - Paid Cards, Telecom Companies, NBFCs, Banking Companies, Super Market Chain, Real Estate, Companies, PSUs
  • Minimum Capital Rs. 100 Crores
  • 75% Capital must be inve G - Sec.
  • Individuals / Pofessionals with equal to or  than 10 years of experience, NBFCs, Micro Organization and Local Area Banks
  • Minimum Capital Rs. 100 Crores
  • 75% Lending in PSL
  • Other Provisions
  • 25% Deposits in Other Banks
  • Min. 26% Investment from Indians
  • Compulsory Listing on a recognized stock exchange as net worth exceeds Rs. 500 Crores
  • Maximum Balance Limit in an account is Rs. 1 Lakh
  • Compulsory to adopt technological and networking solutions for operations
  • Minimum capital requirement - 15%
  • Compulsory to comply with reserve system
  • Individual borrowings are eligible up to 10% and organizational borrowings are eligible up to 15% of the total assets
  • Will provide BFs facility
  • 25% branches in non - banking rural areas.
  • RBI had received 142 application for payment banks and 71 application for small banks.

    A preliminary scrutiny of all the applications involving prima facie eligibility including the ability to raise the minimum initial capital and the status of ownership and control by residents as per the Guidelines was carried out by the RBI team. The findings of the preliminary scrutiny were presented to an External Advisory Committee (EAC) constituted under the Chairmanship of Smt. Usha Thorat, former Deputy Governor of the RBI. The EAC recommended applications to be taken up for detailed examination based on prima facie eligibility vis - à - vis the Guidelines.

    The detailed scrutiny involved assessment of financial soundness, proposed business plan, fit and proper status based on due diligence reports received from the regulators, investigative agencies, banks, etc.

    An important factor was proposed reach into unbanked areas and underserved sections of the population. The EAC held detailed discussions in multiple sittings on the applications based on the information presented to it. The EAC then submitted its recommendations to the RBI.

    An Internal Screening Committee (ISC), consisting of the Governor and the four Deputy Governors of the RBI thereafter examine the applications. The ISC also deliberate on the rationale of the recommendations made by the EAC.  After scrutinising all the applications, the ISC made its independent recommendations to the Committee of the Central Board (CCB) of the RBI.

    Based on the recommendations the RBI in August 2015 gave tentative sanction to the following 11 PAYMENT BANKS-

    1. Aditya Birla Nuvo 2. Airtel M Commerce 3. Cholman-dalam Distribution 4 Department of Posts 5. Fino Pay Tec 6. National Securities Depository Limited 7 Reliance Industries 8 Sun Pharma 9. Paytm 10. Tech Mahindra 11. Vodafone Mpesa  

    Note: Out of the above, three companies have withdrawn namely Cholmandalam Distribution, Sun Pharma and Tech Mahindra as on 25/05/2016

    In September 2015 RBI has issued in principle approval to 10 SMALL FINANCE BANKS as follows.

    1. Au Financiers (India) Ltd., Jaipur. 2. Capital Local Area Bank Ltd, Jalandhar. 3. Disha Microfin Private Ltd., Ahmedabad.

    4. Equitas Holdings P Limited Chennai.

    5. ESAP Microfinance and Investments Private Ltd.,  Chennai.

    6. Janalakshmi Financial Services Private Limited Bengaluru.

    7. RGVN (North East) Microfinance Limited, Gowahati.

    8. Suryoday Micro Finance Private Ltd, Navi Mumbai.

    9. Uijivan Financial Services Private Ltd, Bengaluru.

    10. Utkarsh Micro Finance Private Ltd. Varanasi.

    Functions of Commercial Banks

    The functions of commercial banks are of two types

    (A) Primary functions

    (B) Secondary functions

    Chapters
    Simple Harmonic Motion
    Cytology
    Classifucation Of Plants
    Structural Composition Of Plants
    Nutrition In Plants, Harmones And Plant Disease
    Ecosystem
    Classification In Animals
    Nutrition In Animals
    Human Digestive System
    Human Respiratory System
    Human Skeleton System
    Human Excretory System
    Human Nervous System
    Human Circulatory System
    Human Endocrine System
    Human Reproductive System
    Genetics
    Human Diseases
    States Of Matter
    Metals And Non Metals
    Acid Bases And Salts
    Periodic Classification
    Fuel, Combustion And Flame
    Environmental Chemistry
    Rest And Motion
    Work Power And Energy
    Gravitation
    Pressure And Its Effects
    Sound and Waves
    Heat And Temperature
    Light - Reflection
    Electricity And Magnetism
    Modern Physics
    Force And The Laws Of Motion
    Light - Refraction
    Dispersion And Human Eye
    Magnetic Effect Of Electric Current
    Atom And Molecule
    Pre-Historic Period
    Indus Valley Civilization
    Vedic Civilization
    Religious Reform Movement
    The Early Kingdoms
    The Mauryan Empire
    Post Mauryan Period
    The Age Of The Guptas
    Post Gupta Era
    Age of Rajput
    Khilji Dynasty
    Slave Dynasty
    Tughlaq and Sayyid Dynasty
    Vijaynagar Empire And Bahamani Kingdom
    Mughal Empire And Beyond
    Lodhi Dynasty
    Cholas, Chalukyas and Pallavas
    Arab Invasions
    Bhakti and Sufi Movement
    Rise of Sikhs, Jats and Marathas
    Administrative Structure of Delhi Sultanate
    Architecture During Medivial India
    Advent Of The Europeans
    Post Mughal Period
    Rise of New States in 18th Century
    Growth of British Paramountacy
    Socio Religious Reforms
    Constitutional Development of India
    Indian Struggle Against British Rule
    The Revolt Of 1857
    Education Under British Rule
    Role of Press in Freedom Struggle
    First Phase of National Movement
    Second Phase of National Movement
    Third Phase of National Movement
    Constitutional Development in India
    Constituent Assembly
    Union And Its Territory
    Structure of Indian Constitution
    Fundamental Rights and Duties
    The Union Executive
    The Union Legislature
    Constitutional Amendments and Provisions
    Judiciary In India
    Emergency Provisions
    Center - State Relations
    The State Executive
    The State Legislature
    Election Commission Of India
    Constitutional Organisation
    Non-Constitutional Organisation
    Local Self Goverment
    India - Size And Location
    Geological History Of India
    The Physical Features Of India
    Climate Of India
    Soils In India
    Natural Vegetation
    Windlife Conservation In India
    Drainage System of India
    Irrigation System Of India
    Agriculture In India
    Livestock And Fisheries In India
    Minerals And Energy Resources In India
    Means Of Transport In India
    Major Industries In India
    Tribes of India
    Census of India 2011
    Music
    Dance
    Theatre
    Pantings
    Art, Architecture & Culture of India
    Bio-Diversity
    Earth And Its Structure
    Land Rock And Soil
    Atmosphere, Climate And Weather
    Oceanography
    Human And Regional Geography
    Economic Growth And Development
    Sectors Of Indian Economy
    Economic Planning Of India
    Fiscal And Monetary Policy In India
    Infrastructure In India
    Effects Of British Rule On Indian Economy
    National Income
    Banking System In India
    Poverty And Unemployment
    Inflation And Trade Cycles
    Major Institutions
    Environmental Studies
    Chemistry In Everyday Life
    Units And Dimensions
    Tissues In Organism
    Content / Category
    Class / Course
     
     
     


    Students / Parents Reviews [10]