BackNBFC shares rise after RBI issues final norms for small, payment banks
Telcos, supermarkets, and even companies that run electronic wallets can open payments banks, according to RBI
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Mumbai: Shares of non-banking finance companies (NBFC) surged on Friday after the Reserve Bank of India (RBI) issued final norms for setting up payment and small banks.
SKS Microfinance Ltd was trading up 3.1% at ₹ 357.75, Manappuram Finance Ltd was up 5.6% at ₹ 37.50, Magma Fincorp Ltd rose 3.9% at ₹ 110.25, Shriram Transport Finance Co. Ltd up 1.2% at ₹ 1,050.55 and Reliance Capital Ltd gained 1% at ₹ 532.50. LIC Housing Finance Ltd rose 2% to ₹ 416.70 while L&T Finance Holding Ltd gained 1.4% at ₹ 70.95.
Telcos, supermarkets, and even companies that run electronic wallets can open payments banks, RBI said. The move is aimed at providing basic savings, deposit, payment, and remittance services to people who currently do not have a bank account, including millions of migrant workers. Fifty percent of Indians don’t have bank accounts.
RBI has asked interested parties to apply by 16 January. The application will be screened by an external committee, which will send its recommendations to the central bank.
The central bank also released rules for small banks, which will provide loans to small businesses and marginal farmers. Draft guidelines for both were released on 17 July. While the final norms are similar to those suggested in the draft rules, the central bank has expanded the scope of the business for such entities and given them more leeway in the manner in which deposits raised by them are deployed.
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