RBI ready to issue new licences for small payments banks
RBI is introducing norms for the RRBs and cooperative banks that are in line with the norms for banks
Reserve Bank of India (RBI) Deputy Governor R Gandhi on Friday advised the regional rural banks (RRBs) and co-operative banks to pull up their socks as they are set to face more competition in the future with a fresh round of banking licences being issued to small payments banks.
RBI is introducing norms for the RRBs and cooperative banks that are in line with the norms for banks
Reserve Bank of India (RBI) Deputy Governor R Gandhi on Friday advised the regional rural banks (RRBs) and co-operative banks to pull up their socks as they are set to face more competition in the future with a fresh round of banking licences being issued to small payments banks.
They could be fighting for the same set of customers, he added.
RBI has received 113 applications for the niche banks, including 72 applications for small finance banks and 41 for payments banks. An RBI panel had recommended that a special category of banks, called payments banks be set up to widen the spread of payment services and deposit products to small businesses and low-income households
Meanwhile, they could also be involved in the attempt for financial inclusion. With direct cash transfer too slowly taking off in India, the RRBs and co-operative banks have been asked to prepare for competition that's likely to emerge. Hence, he advised them to get tech-savvy
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