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“During the quarter ended December 31, 2024, the Reserve Bank of India has received one application under the Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector dated December 05, 2019, from VFS Capital Limited,” RBI said in a press release.
VFS Capital is a non-banking financial company-microfinance institution (NBFC-MFI) based in Kolkata, West Bengal.
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The MFI currently caters to over four lakh women borrowers through its network of around 283 branches covering 15 states such as West Bengal, Bihar, Assam, Jharkhand, Odisha, Madhya Pradesh, Uttarakhand, Chhattisgarh, Haryana, Uttar Pradesh and Rajasthan.
As per the guidelines, the initial minimum paid-up voting equity capital for a universal bank should be ₹500 crore. Thereafter, the bank should have a minimum net worth of ₹500 crore at all times.
The minimum paid-up voting capital/net worth for SFBs should be ₹200 crore. In the case of urban co-operative banks that want to voluntarily transit into SFBs, the initial requirement of net worth is ₹100 crore, which will have to be increased to ₹ 200 crore within five years.
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(Edited by : Shoma Bhattacharjee)
