BEWARE OF FAKE INSTITUTES WITH SIMILAR NAMES. blank    blank

“On tap” licencing for banks

  Jul 06, 2020

“On tap” licencing for banks

What is on tap licencing for banks? Discuss RBI guidelines for on tap licensing of small finance banks.

  1. The Reserve Bank of India (RBI) has released guidelines for on tap licensing of Small Finance banks in the country.  SFB are differentiated banks setup on the recommendation of Nachiket Mor committee (2013) constituted by RBI.
  2. On tap licensing refers to the practice of granting license throughout the year on a regular basis.  Currently, there is no on tap licensing window for small finance banks.   
  3. The current process for licensing is governed by the 2014 guidelines by RBI on licensing of small finance banks in private sector. 
  4. Small finance banks provide credit access to small businesses and unorganised sector entities through technology and low cost operations.  The guidelines provide for: