BANKING AFFAIRS

Detailed explanation-1: -Eligible promoters Promoter/promoter groups should be ‘fit and proper’ with a sound track record of professional experience or of running their businesses for at least a period of five years in order to be eligible to promote small finance banks.

Detailed explanation-2: -Eligible Promoters for Small Finance Banks The minimum net worth of such SFBs must be INR 100 crore from the date of commencement of business. Although, they are required to increase their minimum net worth to INR 200 crore within five years from the date of commencement of business.

Detailed explanation-3: -Resident individuals/professionals with 10 years of experience in banking and finance; and Companies and Societies owned and controlled by residents will be eligible as promoters to set up small finance banks.

Detailed explanation-4: -The bank should have been included in the Second Schedule to RBI Act 1934. It should have a minimum net worth of ₹500 crore. Its CRAR should not be less than 15%. The net NPAs of the bank should not exceed 6%, during previous four quarters.