BANKING AFFAIRS

Detailed explanation-1: -1) Small Finance Banks aim to address financial inclusion. 2) The minimum paid-up capital requirement for these banks would be Rs 100 crore only. 3) At least 50% of the loans should constitute loans and advances of up to Rs 25 lakhs.

Detailed explanation-2: -Small Finance Banks It is licensed under section 22 of the Banking Regulation Act, 1949. The minimum paid-up capital required to set up a small finance bank is Rs. 200 crore and it will be required to maintain a capital adequacy ratio of 15 percent of its risk-weighted assets.

Detailed explanation-3: -200 Cr. The minimum capital for Small Finance is prescribed at Rs. 200 crore .