Breaking

Showing posts with label banking Licences. Show all posts
Showing posts with label banking Licences. Show all posts

Tuesday, 4 July 2017

20:25

FINO Payments Bank Limited commences operations

FINO Payments Bank Limited commences operations
Date : Jun 30, 2017

FINO Payments Bank Limited commences operations
FINO Payments Bank Limited has commenced operations as a payments bank with effect from June 30, 2017. The Reserve Bank has issued a licence to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of payments bank in India.
FINO PayTech Limited, Navi Mumbai was one of the 11 applicants which were issued in-principle approval for setting up a payments bank, as announced in the press release on August 19, 2015.
Jose J. Kattoor
Chief General Manager
Press Release: 2016-2017/3534


Source:RBI


0
By at No comments:
Labels: , , ,

Sunday, 15 May 2016

17:17

Time to think of policy on dealing with bank failures: Uday Kotak

Time to think of policy on dealing with bank failures: Uday Kotak

MUMBAI: As the banking sector expands with entry of new players in different avatars, veteran banker Uday Kotak feels policymakers must think about the ways to deal with a situation when a bank goes belly-up.

The banking sector is currently awaiting entry of many differentiated-licence banks such as payments and small finance banks , while the Reserve Bank has just floated a discussion paper for on-tap licensing of full-fledged banks going forward.

"Never in our history have you seen so many banks coming in, in different avatars. Now, you have the draft banking guidelines for new banks on-tap," Kotak said.

"Till date, they have not let any bank fail. If you got 50 or 100 banks, I am sure they will have thought through that (a bank going belly up) as well," said the vice chairman and managing director of Kotak Mahindra Bank.

"I am sure the policymakers will also have to revisit that," he said.

The comments from Kotak, during an interaction here last week, come at a time when 20 new payments banks and small finance banks are on their way to enter the system.

Besides, RBI has also said that wholesale banks apart from custodian banks will be the next ones to be introduced in the differentiated banking licence regime.

RBI Governor Raghuram Rajan himself, however, has played down the concerns over any possible banking crisis in India and said last week in London that there was "absolutely no chance" of any 'Lehman moment' in the country - referring to collapse of once-all-powerful banking giant Lehman Brothers in the US that triggered a major financial crisis in 2008.

In times of stress, policymakers in India tend to use the formula of forcing the affected bank to merge with a bigger lender. But with the number of banks increasing, it might become difficult to effect such deals.

It can be noted that for protecting the depositors, there is a deposit insurance with a cap of Rs 1 lakh per customer in place.

Kotak Mahindra Bank has itself tied up with the Bharti Airtel's payments bank, but Kotak was not willing to comment on its launch plans.

The payments bank has become among the first to get the final licence, and Kotak said it would be better for the board of the payments bank to speak on the plans.

0
By at No comments:
Labels: , , ,

Friday, 6 May 2016

08:40

Reserve Bank of India:Relaxation Of Norms for on-tap Licenses for Universal Banks

 Reserve Bank of India:Relaxation Of Norms for on-tap Licenses for Universal Banks

RBI for easier bank permits

The Reserve Bank of India (RBI) has proposed a relaxation of norms for on-tap licenses for universal banks, as the banking regulator seeks to open the key economic sector to wider participation.This is first time since the financial industry was opened up in 1991 that the RBI has decided to make the bank licensing process continuous as opposed to a ‘stop-and-go’ approach.

Broad contours

While the broad contours of the norms are in line with guidelines issued for bank licensing in 2013, the central bank has now made it clear that business houses predominantly in financing activities, for example, non-banking financial companies (NBFC) would be preferred.

“Groups in the private sector that are ‘owned and controlled by residents’ and have a successful track record for at least 10 years, provided such a group has total assets of Rs.5,000 crore or more, the non-financial business of the group does not account for 40 per cent or more in terms of total assets or in terms of gross income,” would be eligible as promoters, according to the RBI.

“Preference will be given to promoting entities having diversified shareholding,” according to the central bank. Individuals can also apply for a licence but they should have at least 10 years of experience in banking and finance. The central bank has allowed individuals as well as companies who are directly or indirectly connected with large industrial houses to have 10 per cent stake in a bank, as compared to 5 per cent earlier. However, the regulator said such shareholders should not have any director on the board of the bank on account of shareholder agreements or otherwise. The initial capital requirement to open a bank has been set at Rs.500 crore and the entity has to maintain 13 per cent capital adequacy ratio for three years.

Source:The Hindu 
0
By at No comments:
Labels: , , ,

Wednesday, 23 December 2015

18:13

Small finance banks can join payment system: RBI

Small finance banks can join payment system: RBI

Entities that received in-principle approval for setting up payments banks and small finance banks can join any payment system only after getting the final licence, the Reserve Bank of India (RBI) said on Tuesday.

“... entities that have been granted in-principle approval by it for setting up payments banks and SFBs can apply to the RBI for membership of any centralised/ decentralised payment systems, including Bharat Bill Payment System, after receiving the licence for commencement of business under the Banking Regulation Act, 1949,” according to a statement from the central bank.

RBI had been receiving queries from such entities regarding the approval process for joining any centralised/ decentralised payment systems, it said.

The central bank, in August and September, announced the names of 21 entities that were granted in-principle approval for setting up payments banks and SFBs.
The ‘in-principle’ approval is valid for 18 months during which time the applicants have to comply with all requirements stipulated by the RBI before grant of final licence for commencement of banking business.

In a separate statement, RBI said to encourage innovators in the area of Payment and Settlement System, the central bank has announced ‘Payment System Innovation Awards’ Broad areas of innovation which could be considered for the awards are payment security including fraud prevention, customer convenience and cost reduction and use of emerging technologies for payments, it said.

Source:BankingUpdates
0
By at No comments:
Labels: , , ,

Friday, 18 September 2015

07:27

The Reserve Bank of India has granted 23 banking licences to new players

The Reserve Bank of India has granted 23 banking licences to new players

 23 new banking licences granted under Raghuram Rajan

The niche banks - small finance and payments banks -have been set up to further the regulator's objective of deepening financial inclusion

Since April 2014, the Reserve Bank of India (RBI) has granted 23 banking licences to new players - two were given universal banking licences (April 2, 2014), 11 were issued payments banks licences (August 19, 2015) and 10 were given licences for small finance banks (September 16, 2015). The niche banks - small finance and payments banks -have been set up to further the regulator's objective of deepening financial inclusion. Going ahead, RBI is planning to come up with "on tap" licences which means there will not be any cut-off date for applying for the licences.

HEADQUARTERS OF THE NEW BANKS

UNIVERSAL BANKS

Mumbai - IDFC
Kolkata - Bandhan

PAYMENTS BANKS

Mumbai
  • Aditya Birla Nuvo
  • Fino PayTech
  • National Securities Depository
  • Reliance Industries
  • Dilip Shantilal Shanghvi
  • Tech Mahindra
  • Vodafone M-pesa


New Delhi
  • Airtel M Commerce
  • Department of Posts
  • Vijay Shekhar Sharma

Chennai
  • Cholamandalam Distribution


SMALL FINANCE BANKS

Mumbai
  • Au Financiers
  • Suryoday Micro Finance
Jalandhar

  • Capital Local Area Bank
Ahmedabad
  • Disha Microfin

Chennai
  • Equitas Holdings

Thrissur
  • ESAF Microfinance and Investments

Bengaluru
  • Ujjivan Financial Services
  • Janalakshmi Financial Services


Varanasi
  • Utkarsh Micro Finance

Guwahati
  • RGVN (North East) Microfinance

REGULATORY REQUIREMENTS

UNIVERSAL BANKS

Eligibility

Companies in the private and public sectors and non-banking financial companies (NBFCs) will be eligible to set up a bank through a wholly-owned non-operative financial holding company (NOFHC). These applicants need to meet the criteria set by RBI. The players will also need to have a sound and successful track record of 10 years

Capital requirement

The initial minimum paid-up voting equity capital for a bank needs to be at least Rs 500 crore. The bank will need to be listed within three years of starting business

Scope of activity

The bank can accept deposits and carry out lending activities without limitations in the area of operations. Also, the banks will have to work towards achieving financial inclusion and 40 per cent of their lending should be towards the priority sector

Promoter's contribution

The NOFHC and the bank will not have any exposure to the promoter group. The bank will not invest in equity / debt capital instruments of any financial entities held by the NOFHC

Foreign shareholding

The aggregate non-resident shareholding in the new bank will not exceed 49 per cent for the first five years, after which it will be according to the existing policy - 49 per cent under the automatic route and 74 per cent under the approval route

Other conditions

The bank's board should have a majority of independent directors. It needs to open at least 25 per cent of its branches in unbanked rural centres (population of up to 9,999, according to the latest census). Also, banks promoted by groups having 40 per cent or more assets/income from non-financial business will require RBI's prior approval for raising paid-up voting equity capital beyond Rs 1000 crore or for every block of Rs 500 crore

PAYMENTS BANKS

Eligibility

Prepaid payment Instrument issuers, individuals/professionals, NBFCs, corporate business correspondents, mobile telephone companies, super-market chains, real sector cooperatives that are owned and controlled by residents, and public sector entities are eligible to apply for payments bank licences. The promoter should be able to meet the 'fit and proper' criteria with a sound track record of of five years

Capital requirements

The minimum paid-up equity capital for payments banks shall be Rs 100 crore

Scope of activity

Can accept deposits of up to Rs 1 lakh a customer and issue debit cards. It can also carry out payments and remittance services and is allowed to distribute insurance and mutual fund products. Payments banks can also serve as a business correspondent of another bank

Promoter's contribution

The promoter's minimum initial contribution to the paid-up equity capital should be at least 40 per cent for the first five years from the start of its business

Foreign shareholding

The foreign shareholding in payments banks would be according to the foreign direct investment (FDI) policy for private sector banks - 49 per cent under the automatic route and 74 per cent under the approval route

Other conditions

The operations of the bank should be fully networked and technology-driven from the beginning and it should also have a high powered customer grievances cell to handle complaints

SMALL FINANCE BANKS

Eligibility

Resident individuals/professionals with 10 years of experience in banking and finance, companies and societies owned and controlled by residents, existing NBFCs, microfinance institutions, and local area banks can apply for small finance bank licences. All entities should be owned and controlled by Indian residents and should be able to meet the 'fit and proper' criteria stated by RBI

Capital requirements

The minimum paid-up equity capital required is Rs 100 crore

Scope of activity

They will primarily undertake basic banking activities of accepting deposits and lending to unserved and underserved sections, including small business units, small and marginal farmers, micro and small industries and unorganised sector entities. There will not be any restriction in the area of operations of small finance banks.

Promoter's contribution

The promoter's minimum initial contribution to the paid-up equity capital of small finance bank should be at least be 40 per cent and needs to be gradually brought down to 26 per cent within 12 years from the start of operations.

Foreign shareholding

Foreign shareholding in small finance banks would be according to the FDI policy for private sector banks- 49 per cent under the automatic route and 74 per cent under the approval route.

Other conditions

The small finance bank will be subject to all prudential norms and regulations of RBI, as applicable to existing commercial banks, including requirement of maintenance of cash reserve ratio and statutory liquidity ratio. Apart from this, they will be required to extend 75 per cent of adjusted net bank credit to the priority sector. Also, at least 50 per cent of its loan portfolio should comprise loans and advances of up to Rs 25 lakh

 Source :Business Standard
0
By at No comments:
Labels: , , , , ,