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What should be the minimum capital of Small Finance Banks(SFB) as per RBI’s new guidelines under ‘On-tap’ regime?
  • a)
    Rs. 200 crores
  • b)
    Rs. 100 crores
  • c)
    Rs. 500 crores
  • d)
    Rs. 300 crores
  • e)
    None of these
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
What should be the minimum capital of Small Finance Banks(SFB) as per ...
On September 13, 2019 the Reserve Bank of India (RBI) has framed new guidelines in licensing Small Finance Banks(SFB) under ‘On-tap’ regime in order to make more participants in the finance banking section. The new guideline is thatthe SFBs should have Rs. 200 crores minimum capital within 5 years of its operation. They (SFB) should initially have at least Rs.100 crores for start of operation however it should make it to Rs. 200 crores capital within 5 years.On- tap licencing: It is a time-efficient feature that will allow eligible parties to obtain license on-demand basis and without the need to wait. RBI allows license to the applicants throughout the year.
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What should be the minimum capital of Small Finance Banks(SFB) as per RBI’s new guidelines under ‘On-tap’ regime?a)Rs. 200 croresb)Rs. 100 croresc)Rs. 500 croresd)Rs. 300 crorese)None of theseCorrect answer is option 'A'. Can you explain this answer?
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