The Reserve Bank of India on Tuesday said it would issue operating guidelines for payment banks and small finance banks, many of which are in the process of being set up.
After in-principle approvals were granted to 11 applicants to set up payments banks (PBs) and 10 applicants to set up small finance banks (SFBs) in the private sector in August 2015 and September 2015, respectively, banking licences were granted to three banks to commence small finance bank business, and to one bank to begin payments bank business. Two of the three small finance banks have commenced operations.
The RBI said draft operating guidelines were discussed with the applicants who had received the in-principle approvals. Based on their comments, operating guidelines have been finalised and will be issued during this week.