Over 100 applicants seek licenses to set up Small and Payment Banks : RBI

03 Feb,Mumbai

Reserve Bank of India has received 72 applications for small finance banks and 41 applications for payment banks.

Top corporate houses such as Reliance Industries Limited, Aditya Birla Group, Airtel, Vodafone and Future Group have approached the RBI to seek licenses to set up small finance banks, said , Raghuram Rajan, Governor, Reserve Bank of India Tuesday..

Speaking in Mumbai at the bi-monthly monetary policy review,the RBI Governor said that the Central Bank had formed two external committees to evaluate the applications received to set up these banks.

Payment banks would be allowed payments and remittance services through various channels. However, such lenders cannot issue credit cards, or undertake lending activities, he said.

Small Finance Banks will mainly undertake basic banking activities like acceptance of deposits and lending to unserved and under-served sections RBI Governor said adding these sections will include small business units, small and marginal farmers, micro and small industries and unorganised sector entities.