As part of convergence of the Reserve Bank’s regulations for banks with Basel III standards, the Reserve Bank of India has today placed on its website ‘Draft Master Direction on Minimum Capital Requirements for Operational Risk’ for comments of stakeholders and members of the public. These directions shall be applicable to all Commercial Banks (excluding Local Area Banks, Payments Banks, Regional Rural Banks, and Small Finance Banks).

RBI releases “Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector”

I. Introduction The Reserve Bank had issued the Guidelines for Licensing of “Small Finance Banks” in the Private Sector on November 27, 2014. The process of licensing culminated in granting in-principle approval to ten applicants and they have since established the banks. It was notified in these Guidelines that after gaining experience in dealing with these banks, the Reserve Bank will consider ‘on tap’ licensing of these banks. After a review of the performance of t