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Showing posts with label small finance banks. Show all posts
Showing posts with label small finance banks. Show all posts

Saturday, 27 January 2018

07:03

Small Finance Banks and Payment Banks to offer Atal Pension Yojana

Small Finance Banks and Payment Banks to offer Atal Pension Yojana
Small Finance Banks and Payment Banks to offer Atal Pension Yojana; To provide a boost to the outreach of subscribers under APY. 
Atal Pension Yojana (APY) is a Government of India's Old Age Pension Scheme being implemented through all Banks across the country as per the mandate received from the Ministry of Finance and monitored periodically at PMO. The Prime Minister, Shri Narendra Modi had launched the Social Security Scheme on 9th May 2015 and dedicated the First Ever Guaranteed Pension Product to the people of the country.
Payments Banks and Small Finance Banks are a New Model of banks conceptualized by the Reserve Bank of India (RBI). 11 Payment Banks and 10 Small Finance Banks have received license from Reserve Bank of India to start banking operations in India. Small Finance Banks and Payment Banks are new age banks and given the strength of the bank, expertise and it reach, Small Finance Bank and Payment Bank can play a pivotal role in outreach of subscribers under APY.
To strengthen the existing channels of APY distribution, it is felt that these new Payments Banks and Small Finance Banks will provide a boost to the outreach of subscribers under APY . Participation in APY not only builds a pensioned society but also adds sustainable fee income to Banks by way of attractive incentive for mobilizing APY @ Rs 120-150 for each Account.
In order to familiarize these Small Finance Banks and Payment Banks in Atal Pension Yojana (APY), the Pension Fund Regulatory and Development Authority (PFRDA) has conducted an Orientation Meeting on 15thJanuary 2018 in New Delhi for all the Small Finance Banks and Payment Banks and discussed the implementation of Scheme in these banks. All Small Finance Bank and Payment Bank have positively responded to the initiative undertaken by PFRDA and has committed towards the greater cause of building a pensioned India as per the vision of the Prime Minister of India, Shri Narendra Modi.
Currently the below mentioned Small Finance Banks and Payment Banks has started banking operations:
Small Finance Banks
  1. Ujjivan Small Finance Bank.
  2. Janalakshmi Small Finance Bank.
  3. Equitas Small Finance Bank.
  4. A U Small Finance Bank.
  5. Capital Small Finance Bank.
  6. ESAF Small Finance Bank.
  7. Utkarsh Small Finance Bank.
  8. Suryoday Small Finance Bank.
  9. Fincare Small Finance Bank.
Payment Bank
  1. Paytm Payment Bank.
  2. Airtel Payment Bank.
  3. India Post Payment Bank.
  4. Fino Payment Bank.

As on 23rdJanuary 2018, there are more than 84 lacs subscribers registered under the APY Scheme with an asset base of more than Rs. 3,194 crore.
Source:PIBNEWS


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Monday, 13 November 2017

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Saturday, 24 June 2017

20:05

RESERVE BANK OF INDIA:RECORDING OF DETAILS OF TRANSACTION IN PASSBOOK/STATEMENT OF ACCOUNT

RESERVE BANK OF INDIA:RECORDING OF DETAILS OF TRANSACTION IN PASSBOOK/STATEMENT OF ACCOUNT

RBI/2016-17/326
DBR.No.Leg.BC.76/09.07.005/2016-17
June 22, 2017
All Scheduled Commercial Banks (including RRBs)
All Small Finance Banks and Payments Banks
Dear Sir/ Madam,
Recording of Details of Transactions in Passbook/ Statement of Account
Please refer to instructions contained in Paragraphs 6 and 7 of our circular DBOD.No.Leg.BC.74/09.07.005/2003-04 dated April 10, 2004 on "Committee on Procedures and Performance Audit on Public Services - Report No. 3 - Banking Operations : Deposit Accounts and Other Facilities Relating to Individuals (Non-Business)" advising banks to avoid inscrutable entries in passbooks/ statements of account and ensure that brief, intelligible particulars are invariably entered in passbooks/ statements of account with a view to avoiding inconvenience to depositors.
2. It has come to our notice that many banks still do not provide adequate details of the transactions in the passbooks and/ or statements of account to enable the account holders to cross-check them. In the interest of better customer service, it has been decided that banks shall at a minimum provide the relevant details in respect of entries in the accounts as indicated in the Annex. The list of the transactions mentioned in the Annex is indicative and not exhaustive.
3. Banks shall also incorporate information about ‘deposit insurance cover’ along with the limit of coverage, subject to change from time to time, upfront in the passbooks.
Yours faithfully
(Rajinder Kumar)
Chief General Manager








Source:RBI


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Wednesday, 4 January 2017

08:09

Paytm Payments Bank,Reserve Bank Of India Approved Expects to Start Next Month

Paytm Payments Bank,Reserve Bank Of India Approved Expects to Start Next Month

New Delhi, Jan 3 (PTI) Paytm today said it has received final approval of the Reserve Bank to formally launch its payments bank and it expects to start operations next month.
Payments banks can accept deposits from individuals and small businesses up to Rs 1 lakh per account.
"Today, Reserve Bank of India gave permission to formally launch Paytm Payments Bank. We cant wait to bring it in front of you," Vijay Shekhar Sharma, founder of One97 Communications, said in a blogpost. "No other role or responsibility means as much to me as the privilege of building Paytm Payments Bank, and I intend to take a full-time executive role in the Bank," Sharma said further. He added that at Paytm Payments Bank, the aim is to build a new business model in banking industry, focussed on bringing financial services to hundreds of millions of unserved or underserved Indians. When contacted, a Paytm spokesperson said the company hopes to launch operations in February with the first branch coming up in Noida, Uttar Pradesh.

Paytm was earlier slated to begin operations around Diwali last year. In 2015, RBI had awarded in-principle approval to Vijay Shekhar Sharma, the founder of One97 Communications, to set up a Payments Bank along with 10 others.
With the objective of deepening financial inclusion, RBI kicked off an era of differentiated banking by allowing SFBs (small finance banks) and PBs (payments banks) to start services. A total of 21 entities were given in-principle nod last year, including 11 for payments banks.
Later, three entities -- Tech Mahindra, Cholamandalam Investment and Finance Company and a consortium of Dilip Shanghvi, IDFC Bank and Telenor Financial Services -- backed out of the payments bank licensing.
Currently, Airtel is the only player that has commenced Payments Bank operations. Aditya Birla Idea Payments Bank is expected to launch services in the first half of 2017.
Sharma will hold the majority share in Paytm Payments Bank, with the rest being held by One97 Communications.
Last month, One97 Communications had restructured its business ahead of the launch of the Payments Bank, merging the wallet business with payments bank operation.
Alibaba Group and its affiliate Ant Financial pumped in USD 680 million into Paytms parent One97 Communications last year, taking its total shareholding to over 40 per cent in the countrys largest mobile wallet operator, Paytm.
However, the Chinese entity will not have a direct shareholding in the payments bank. PTI SR MBI MR

Source:India Today


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Tuesday, 29 November 2016

20:20

The Future of Retail Banking: Are Bots Ready to be Your Next Banker?

The Future of Retail Banking: Are Bots Ready to be Your Next Banker?

Text-based services have been around since the dawn of time, but not until the past year have we seen the rise of chatbots, in part led by Facebook’s unveiling of Bots for Messenger towards the beginning of the year. Mark Zuckerberg led the reveal, saying: “I’ve never met anyone who likes calling a business, and no one wants to have to install a new app for every service or business they want to interact with … we think you should just be able to message a business, just as you would a friend.”

Since the Facebook launch, developers have created more than 11,000 bots, and some banks have been brave enough to dip their toes in the water already, keen to explore the role that bots can play within retail banking.
American Express recently launched a Messenger bot that gives customers access to their accounts, also telling them when a purchase has been made with their AMEX card, and also providing information about past purchases. Danish bank Lunarway has also introduced a Facebook bot that responds to simple customer queries, such as checking balance and making transfers, but has plans to rapidly increase its sophistication. In France, Société Générale has just launched a bot on Facebook Messenger and Bank of America has announced plans to do the same.

The promise is that, pretty soon, customers will be able to use their favorite messaging app, be it Slack, Messenger, Skype or Telegram etc., to communicate not only with friends and family, but with all sorts of online services (including banking) in a natural and conversational way.
But while a few banks might be in a position to experiment, for the majority it’s an ambiguous space which needs to be exceptionally well understood before significant investment is made. Where money and private information is involved, the stakes are currently very high. A recent Forrester report advised that banks should hold off and wait a further two to three years before investing in customer-facing chatbot services. Instead, for the time being, it states that banks would be better off working with their technology partners to focus on foundational digital initiatives that will enable better bots and artificial-intelligence-based services in the future.

There are several reasons for this, but fundamentally the technology simply isn’t mature enough yet and AI hasn’t quite progressed to the point where it can really carry on a conversation and always give a customer what they’re asking for. In order for banking bots to go mainstream, it’s essential that they’re easy to use, with high-functioning natural language processing capabilities. Within Forrester’s recent research it found that although some chat bots offered a quick and effective answer to a consumer’s question, about one-third of the time, existing chat bots either failed to complete the consumer’s request or provided a clunky, awkward experience. Banking customers can be unforgiving and if there’s an issue with a payment or a funds transfer, the repercussions can be significant.

There’s little doubt that AI and bot technology will improve, and there’s much being invested in this space at present by some of the world’s largest technology companies, as well as some innovative startups. With opportunities within apps dwindling, the greater opportunity is undoubtedly within bots, but according to Forrester it will be the tech companies that drive development and take the AI capabilities to the next level, not banks.

Are bots the new apps?

Studies consistently show that smartphone users have condensed their daily screen time into just a handful of favorite apps, often a browser, a couple of chat and social apps and maybe a game or two. It’s clear that consumer enthusiasm for new apps is waning, and a quarter of all downloaded apps are abandoned after a single use. Achieving a competitive edge in this market is harder than ever with the 20 most successful developers grabbing almost half of all revenues within Apple’s app store, presenting a significant challenge for banks. With the app economy maturing in this way, it seems certain that the text-based chatbot market is poised to take its place. But the question banks are probably asking themselves right now is “are bots the new apps?”

We are currently at an interim stage, where the line between apps and bots is a little blurred, and this is quite noticeable within the banking industry. Digit, for example, is an intelligent app that connects to an individual’s current account, analyzes their income and spending habits, and every few days identifies a small amount of money it can safely move to a savings account without the customer becoming overdrawn. ING has also rolled out a peer-to-peer-payment app called Twyp, which allows consumers to pay small amounts to contacts on their mobile devices in just a few seconds.

Another factor to consider is that instant messaging remains incredibly popular. Over 2.5bn people have at least one messaging app installed on their phone, with Facebook Messenger and WhatsApp (also owned by Facebook) topping the charts. WhatsApp users average nearly 200 minutes each week using the service. These usage figures are only predicted to rise and within a couple of years will reach 3.6bn—approximately half of the entire human population. It’s a trend that cannot be ignored when weighing up the consumer attention economy, and the continuing popularity of messaging apps suggests people will happily talk to bots in the future.

Bots will need much experimentation to find their place, but there’s no reason that they couldn’t co-exist on people’s smartphones with apps and other future technologies yet to be invented.

The long and winding road to digital banking

Speaking within the Forrester report referenced above, Zor Gorelov, CEO of AI company Kasisto, explains: “To build a truly smart banking bot we need access to clean, properly structured data from banks. The banks creating lifestyle banking with conversational AI are the ones that are investing in their data infrastructure right now. Our AI and machine learning rely on that data to create intelligent banking conversations with consumers.”

There’s no doubt that banks need to ensure they have an infrastructure in place to cope with the digital changes afoot. This requires time and money and a deep understanding of where efforts would be best placed. Instead of spending heavily on chat bots now, or other newly emerging innovations, such as voice assistants, digital teams at banks should use the next couple of years to get their houses in order, focusing on the integration of back-end systems, improving data infrastructure, and removing any restrictive legacy systems and silos. They need to be able to serve their customers now and in the future, while developing brand new services, incubating ideas and integrating FinTechs.

For many, this presents a sizeable challenge, best answered by the bimodal IT model, which is the practice of managing two separate but coherent styles of work: one focused on predictability; the other on exploration (as defined by Gartner). So, while banks should be focusing on digital transformation that is expected and well understood (including the evolution of their legacy infrastructure), they also need to be exploring and experimenting with ways to solve new and emerging problems, while also keeping customers happy!

Striking the balance between technology and human interaction

The global race for banks to be digital first is on, but it is still early in the game. Leading banks are in the process of learning how to take a mobile-first approach and re-imagine their customer experiences, from opening up a current account to buying a home or taking out a small business loan. While many have begun migrating their customers from the branch or call center to their digital channels, it’s critical to take a country-specific view and carefully consider the cultural differences and preferences before deciding on the pace of change. The Netherlands, for example, has among the highest mobile adoption rates for banking within the world, and according to recent research by Bain, Dutch mobile usage has risen fourfold in two years while the branch now plays a minor role. Contrast this situation with Italy, which is lagging behind quite significantly in the role digital plays within banking (Italy is at the bottom of European rankings, with 26% of the population using internet banking vs. 44% in the EU-28)

For the average bank, a current priority is how to migrate routine activities out of the branch to self-service digital channels. But it’s critical that the mobile or digital experience is enough to truly delight the customer and remove any frustrations they might have in a branch. Right now, customers aren’t ready to be faced with a purely automated customer experience, although they increasingly view having to use branches and call centres as an inconvenience for many transactions. Getting the balance right is critical. Human interactions still count for a lot, and according to Bain, those customers who use both physical and digital channels still tend to be more loyal and more valuable to their primary bank.

There’s little doubt that the role of the branch, and front desk staff, is evolving significantly. Employees still have an important role to play, and particularly within complex transactions, but increasingly they will see themselves conversing more with customers through online chat or video. This will enable banks to better pool their specialist talent and achieve higher levels of productivity. Dutch bank ABN Amro, for example, has begun advising customers on mortgages via webcam, so that customers don’t have to physically hand over documents at a branch.

Exciting times lay ahead for banks, particularly so in Europe. While chatbots might be our future bankers, right now, it’s critical to consider the bigger picture, and focus on the initiatives that will help drive customer loyalty. It’s important to stay ahead of the competition, but not every emerging innovation needs to be frantically implemented.

Source:CITRIX
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Saturday, 10 September 2016

08:15

Equitas Small Finance Bank to expand loan disbursements

Equitas Small Finance Bank to expand loan disbursements

CHENNAI, SEPTEMBER 6
Newly-launched Equitas Small Finance Bank will expand loan disbursements for agriculture and small businesses and get into gold loans, said its Managing Director and CEO PN Vasudevan.
The bank, which launched its operations with three branches in Chennai on Tuesday, is one of the 10 microfinance players to have received in-principle licence last year to enter small finance banking.
Previously, as a microfinance institution, Equitas Finance had concentrated on commercial vehicle loans, housing loans and small enterprises. It has a customer base of about 26 lakh, about ₹6,500 crore in advances and has grown at about 50 per cent annually over the last five years.
Vasudevan said most of the 580 lending branches under Equitas Finance will be converted in stages to bank branches.
Initially, 412 branches will be converted to full-fledged banks in the coming months. The rest will be lending branches. The bank has over 9,000 staff and will recruit about 3,500 more staff.
Over ₹100-crore investments have gone into setting up the IT infrastructure for the bank which will enable it to launch online services, apart from having efficient systems. Equitas has built up the skills to assess credit worthiness of small and micro businesses efficiently and quickly.

This will stand it in good stead as it launches full-fledged banking operations, he said.

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Tuesday, 26 April 2016

07:08

India's first small finance bank launched

India's first small finance bank launched

Capital Small Finance Bank, India's first small finance bank, was launched here on Sunday. It opened 10 new branches on its inaugural day.

The Jalandhar-headquartered bank had been operating as Capital Local Area Bank since January 2000 with 47 branches in five districts of Punjab.

It is among the 10 entities that were given the in-principle approval by the Reserve Bank of India (RBI) to set up small finance banks.

While inaugurating the bank, Nirmal Chand, regional director of RBI, Chandigarh, said it was a historic day for the banking sector in India as it would be reckoned as a day when small finance banks were introduced into the banking system.

"We have regional rural banks, cooperative banks and other small entities, besides a giant network of public and private sector banks. But, there is a huge void in the banking sector," he said.

Chand noted that India has seven branches per 100,000 population compared with 40 branches per 100,000 population in developed countries. According to him, this gap can be bridged by small finance banks.

"The financial inclusion aims to have one bank account per member of the family. But, there are many families those have adult members without a bank account. Cent per cent financial literacy means one bank account per adult. Small banks can tap this population. Independent studies have revealed that around 90 per cent of the micro and small businesses have no access to the formal mainstream financial institutions. Since their ticket size is small, these banks can bring micro and small entrepreneurs into their fold," Chand added.

Sarvjit Singh Samra, managing director of Capital Small Finance Bank, said the bank's transition from a local area bank into a small finance bank has removed the geographical barrier of expansion.

Earlier, the lender's operations were restricted to five districts in the state - Jalandhar, Hoshiarpur, Kapurthala, Amritsar and Ludhiana. Now, the lender can expand in any part of the country.

Samra, however, plans to grow in a phased manner. In the current financial year, the bank would consolidate its in Punjab by adding 29 branches. Out of this, 10 were opened on Sunday.

The bank's business is projected to increase four-fold from Rs 3,000 crore as on March 31, 2016 to Rs 12,000 crore and branch network to 216 by March 2021.

Samra said that under RBI's statutory guidelines, small finance banks should lend at least 50 per cent of their loans to an average ticket size of below Rs 25 lakh. For Capital Small Finance Bank, exposure to small ticket borrowers is 60 per cent, he added. The bank's priority-sector lending, too, is higher at 79 per cent of total advances against the RBI norm of 75 per cent.

Being the only bank with seven-day operations in rural areas, Capital Small Finance Bank expects to achieve its targets as planned.

 FAST FACTS ABOUT THE BANK

  • Capital Local Area Bank has been in operation since January 2000
  •  It had been operating with 47 branches in five districts of Punjab
  •  It is among the 10 entities that were given the in-principle approval by RBI to set up small finance banks
  •  In the current financial year, the bank would consolidate its business in Punjab by adding 29 branches
  •  Out of this, 10 were opened on Sunday
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Saturday, 5 March 2016

06:30

Capital Local Area Bank receives RBI licence to operate as small finance bank

Capital Local Area Bank receives RBI licence to operate as small finance bank

Capital Local Area Bank has emerged as the first bank to have received licence from the Reserve Bank of India to start small finance bank. "We plans to start its operations on April 13, on the auspicious day of Baisakhi," Sarvjit Singh Samra, managing director of the bank told ET. "The bank plans to open 10 new branches on the first day of operation," he added.
From day one the bank plans to keep all its branches open for all seven days a week. 

"This will give a competitive edge to the Bank over other banks operating in the region," he said.

As present the bank has 44 branches and three more would be opened by March 31, 2016. We will close the year with total business (deposits and advances) of Rs 3000 crore, he said.
On future plans, Samra said that in the next five years the bank plans to have 216 branches and total business of Rs 11800 crore. Also during the first five years of the operations the bank will focus on northern region. Currently, the bank is operating in Punjab's five districts -- Jalandhar, Kapurthala, Hoshairpur, Ludhiana and Amritsar.

So far, Capital Local Area Bank operated as a local area bank with restrictions on opening branches. As a small finance bank it can open branches across India.
Last year, in September 2016, the Reserve Bank issued in-principal approval to 10 entities to operate as small finance banks. These banks are set up with the aim to provide banking service to unserved and underserved section. Almost 50% of the loan book should constitute advances upto Rs 25 lakhs.

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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
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