What changed
RBI has issued directions for small finance banks on branch authorisation, digital banking, and business facilitation. The directions cover various aspects, including role of board of directors, banking outlet authorisation, digital banking units, business facilitators, and doorstep banking.
What it means for you
These directions aim to ensure that small finance banks operate in a safe and sound manner, provide efficient services to customers, and maintain transparency in their operations. The directions will impact small finance banks in terms of their branch authorisation, digital banking, and business facilitation activities.
What you must do
- Review and comply with the RBI directions on branch authorisation, digital banking, and business facilitation.
- Ensure that all banking outlets provide services for a minimum of four hours per day and for at least five days a week.
- Implement robust risk management and cyber security measures for digital banking units.
- Engage business facilitators and business correspondents in accordance with the guidelines issued by RBI.
Who it affects
Small finance banks, Business facilitators, Business correspondents
What is the purpose of RBI's directions on small finance banks?
The directions aim to ensure that small finance banks operate in a safe and sound manner, provide efficient services to customers, and maintain transparency in their operations.
What are the key aspects covered in RBI's directions on small finance banks?
The directions cover various aspects, including role of board of directors, banking outlet authorisation, digital banking units, business facilitators, and doorstep banking.
What are the consequences of non-compliance with RBI's directions on small finance banks?
The consequences of non-compliance are not specified in the directions, but non-compliance may attract penalties and other regulatory actions.