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RBI/2017-18/14
FIDD.CO.SFB.No.9/04.09.001/2017-18
July
6, 2017
The Chairman/ Managing Director/
Chief Executive Officer
Small Finance Banks
Dear Sir/Madam,
Small Finance Banks – Compendium
of Guidelines on Financial Inclusion and Development
In view of the announcement made
in the budget 2014-15 regarding creation of a framework for licensing small
banks, and to give a thrust to the supply of credit to micro and small
enterprises, agriculture and banking services in unbanked and under-banked
regions in the country, Reserve Bank decided to licence new “Small Finance
Banks (SFBs)” in the private sector. Following a due process, in-principle
approvals were given to ten applicants to set up SFBs vide press release dated
September 16, 2015.
2. Subsequently, Operating
Guidelines for Small Finance Banks were issued vide Circular
DBR.NBD.No.26/16.13.218/2016-17 dated October 6, 2016, which
prescribed, inter alia, broad indicative guidelines in areas related to
Financial Inclusion and Development. In continuation with the same,
comprehensive set of guidelines in the form of a compendium is Annexed. The guidelines are
operational with effect from the date of this compendium.
Yours faithfully,
(Uma Shankar)
Chief General Manager-In-Charge
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