More than 100 applicants for small and payments banks: RBI

Large business houses such as Reliance Industries, Aditya Birla Group and Bharti Enterprises led the rush of applicants for payments banks permits


Payments banks will provide savings, deposits, payments and remittance services to people who do not have a bank account, including millions of migrant workers. Photo: Reuters
Payments banks will provide savings, deposits, payments and remittance services to people who do not have a bank account, including millions of migrant workers. Photo: Reuters

Mumbai: The Reserve Bank of India (RBI) has received 113 applications for opening small and payments banks by the last day of such submissions on Monday.

“72 applications for small finance banks and 41 applications for payments banks were received up to the deadline for submission yesterday (Monday). This number excludes applications that might have been received at other venues,” RBI said in its monetary policy statement.

Large business houses such as Reliance Industries Ltd, Aditya Birla Group and Bharti Enterprises Ltd led the rush of applicants for permits to open payments banks while non-banking financial companies and microfinanciers applied to open small banks.

Payments banks will provide savings, deposits, payments and remittance services to people who do not have a bank account, including millions of migrant workers. They will not be allowed to lend. Small banks will provide savings products and credit to small businesses and small and marginal farmers.

Two external advisory committees (EACs) will evaluate the applications and make recommendations, the central bank said.

“The EACs for small finance banks and payments banks will be chaired by Usha Thorat, former deputy governor, RBI and Nachiket Mor, director, Central Board of the Reserve Bank, respectively,” RBI said, without naming other members of the committee.

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