Applications for small banks by month end: Raghuram Rajan

Zee Media Bureau

New Delhi: The Reserve Bank of India Governor Raghuram Rajan on Thursday said that the central bank will invite applications for small and payement banks by the end of this month.

Payement banks are meant to serve small businesses and lower income households. Rajan, during a speech in Mumbai said that the final proposal for establishing payment banks was with the finance ministry for feedback.

“Micro-finance borrowers need to be protected from arbitrary loan pricing,” Rajan said.

In July, RBI had issued draft guidelines on payment banks, which are meant to target the needs of under-banked segments such as small businesses, low income households, and farmers.