The Reserve Bank of India has granted in-principle approval to the following.....applicants to set up payments banks under the Guidelines for Licensing of Payments Banks issued on November 27, 2014.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The Reserve Bank of India has granted “in-principle” approval to the following____applicants to set up payments banks under the Guidelines for Licensing of Payments Banks issued on November 27, 2014.

A	27
B	22
C	19
D	11

Explanation:

Detailed explanation-1: -Minimum Paid-up Capital Needed for Getting a Payment Bank License. The minimum required paid-up equity capital for opening a payment bank according to RBI is Rs 100 crore. Also, for the first five years of commencement of establishment, the promoter must contribute at least 40% of the paid up equity capital.

Detailed explanation-2: -They cannot set up subsidiaries to undertake non-banking financial services activities. More importantly, they are not allowed to undertake lending activities at all. Who all got the licence? As many as 11 entities have got the licence.

Detailed explanation-3: -The bank shall be required to maintain a minimum capital adequacy ratio of 12% for a minimum period of 3 years after the commencement of its operations subject to such higher percentage as may be prescribed by RBI from time to time.

Detailed explanation-4: -The RBI would consider granting a licence for commencement of banking business under Section 22 (1) of the Banking Regulation Act, 1949, on being satisfied that the applicant has complied with the requisite conditions laid down by RBI as part of “in-principle” approval.

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