Question
Which of the following information is/are TRUE with
respect to the changes made by the Reserve Bank of India in relation to the Small Finance Banks ? I. The Reserve Bank has raised the minimum capital requirement for small finance banks to Rs 200 crore and permitted Payments Bank to upgrade as SFBs. II. Issuing the revised guidelines, the Reserve Bank notified that for Primary (Urban) Co-operative Banks (UCBs) desirous of voluntarily transiting into SFBs, the initial requirement of net worth would be at Rs 100 crore, which will have to be increased to Rs 200 crore within three years from the date of commencement of business. III. Payments Banks can apply for conversion into SFB after five years of operations if they are otherwise eligible as per the guidelines.Solution
The Reserve Bank has raised the minimum capital requirement for small finance banks to Rs 200 crore and permitted Payments Bank to upgrade as SFBs. Issuing the revised guidelines, the Reserve Bank said that for Primary (Urban) Co-operative Banks (UCBs) desirous of voluntarily transiting into SFBs, the initial requirement of net worth would be at Rs 100 crore, which will have to be increased to Rs 200 crore within five years from the date of commencement of business. Payments Banks can apply for conversion into SFB after five years of operations if they are otherwise eligible as per the guidelines. As per the norms, SFBs are subject to most of the prudential norms that scheduled commercial banks have to adhere to. For instance, they need to maintain a cash reserve ratio (CRR), or portion of deposits to be set aside with the central bank, and statutory liquidity ratio (SLR), or the portion of deposits to be invested in government securities, as stipulated for commercial banks. About 75 per cent of the credit advanced by small finance banks will need to go to sectors that are considered part of the so-called priority sector, including agriculture, small enterprises and low-income earners. Commercial banks have to mandatorily lend 40 per cent of their net bank credit to such sectors.
Which scheme will be implemented over the next three years to promote the conservation values of Ramsar Sites 26 to 75?
 Which sector will be promoted through centres of excellence under the new program for research and innovation?
Which of the following Statements about NCERT is/are True?
(i) NCERT provides academic and technical support for qualitative improvement of schoo...
As per the Union Budget 2024-25, how many high-yielding and climate-resilient crop varieties will be released?
As per the Union Budget 2024-25, The government will reimburse EPFO contributions of employers up to ₹_____ per month for 2 years for all new hires.
According to Times of India report, which of the following bank will be among the world’s top 10 most valuable banks after its merger with the par...
To raise the quality of education the Prime Minister Shri Narendra Modi has announced a scheme Schools for Rising India (PM SHRI) for which the cabinet ...
What is the target for annual production of Green Hydrogen by 2030?
Consider the following statement:
                     I.       157 new nursing college will be established under t...
What is the primary focus of the committee reviewing the New Pension Scheme (NPS)?