SMALL AND PAYMENT BANKS::lemon:

:large_blue_diamond::lemon::large_blue_diamond:
:heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign:
:point_right:SMALL BANKS:
:heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign:
1.They cater to deposits and loans particularly in small areas.
2.They are meant for financial inclusion of small farmers, MSMEs, and the unorganised sector.
3. MFI, NBFC can convert themselves to differentiated small banks if a license is allotted to them.
4. 25% rural branching.
5. 50% loans to MSME.
6. PSL of 40% applies that they need to comply to within 3 years of their licensing.
7. Cooperative bank can’t apply for license of small banks.
8 . NRI can apply for licenses.

9. Cluster preference for licensing would be for North East.
10. They can’t setup subsidiaries.
11. They can appoint BCA but cannot become BCA of other banks.
:point_right:PAYMENT BANKS:
:heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign::heavy_minus_sign:
1.Only CASA, net banking and debit cards or prepaid cards are allowed.
2. Payments and remittance for poors, migrants, unorganized will be their area of concern.
3. Max balance of Rs.1lakh/customer is allowed.
4. They will not issue credit cards and they will not lend loans.