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Small Finance Bank License - Muds Management

Muds services:<br>1. Assistance for obtaining Small Finance Bank License from RBI<br>2. All regulatory and business enquiries are resolved on a priority basis<br>3. Compliance Management and business plans<br>4. Fulfilling of all procedural requirements<br>5. Guidance on regulatory norms<br>6. Explanation on Small finance bank license requirement for new business<br>https://muds.co.in/small-finance-bank-license/

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Small Finance Bank License - Muds Management

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  1. Small Finance Bank License MUDS Management Pvt. Ltd.

  2. MUDS Services 2 3 1 4 6 5 Assistance for obtaining Small Finance Bank License from RBI. All regulatory and business enquiries are resolved on priority basis. Compliance Management & business plans. Fulfilling of all procedural requirements. Guidance on regulatory norms. Explanation on Small finance bank license requirement for new business. MUDS Management Pvt. Ltd.

  3. An Overview ofSmall Finance Bank License Small Finance Banks are registered as a public limited company under the Companies Act 2013. These are licensed under section 22 of the Banking Regulation Act,1949 and are regulated by Reserve Bank of India. MUDS Management Pvt. Ltd.

  4. Objectives 01 Provide framework to promote rural and semi-urban savings. 02 Provide credit in local areas to carry out economic activities. 03 Provide saving vehicles to the underprivileged sections of the society. 04 By using hi-tech, low-cost technology, supply of credit to small businesses. MUDS Management Pvt. Ltd.

  5. Salient Features of aSmall Finance Business Usually, the amount of loans ranges from Rs. 50,000 to Rs. 125000. Generally, this type of institution provides unsecured loans. Housing loans can also be provided up to the amount of Rs. 1, 25,000. 01 02 03 MUDS Management Pvt. Ltd.

  6. Salient Features of aSmall Finance Business These institutions do not provide any form of public deposits. The interest rates are according to the respective guidelines of RBI. Funds of any amount can be raised and there is no ceiling on the amount which can be raised. 04 05 06 MUDS Management Pvt. Ltd.

  7. Benefits of Registeringas a Small Finance Bank MUDS Management Pvt. Ltd. 01 02 03 This bank is formed to cater to the needs of rural and semi- urban consumers. Small customers do not generally get lending services from large banks. These institutions can run niche Banking activities in a particular area of operation.

  8. Benefits of Registeringas a Small Finance Bank MUDS Management Pvt. Ltd. 04 05 06 Areas include loans to small scale industries, insurance-based services, and accepting deposits. These banks enjoy portfolio of huge customers base compared to traditional banks. The process of registration is quite straightforward and simple for this type of entity.

  9. Eligibility Criteria for Banks Promoters minimum Initial contribution to above 40%. Minimum Paid Up Capital Rs. 100 Crores. Foreign Shareholding as per FDI policy for private banks. Extend 75% of ANBC to the sectors classified as PSL. Subjected to all prudential norms and regulations of commercial banks. At least 50% of its loan portfolio should constitute of loan and advances upto 25 lakhs. MUDS Management Pvt. Ltd.

  10. Essential Documents forSmall Finance Bank License MUDS Management Pvt. Ltd. 01 02 03 Company registration certificate from RoC. No lien Certificated from bank specifying the net owned funds of the company. As per Rule 11 of the Banking Regulation (Companies) Rules, 1949, applications had to be submitted in the prescribed form (Form III) to RBI.

  11. Essential Documents forSmall Finance Bank License MUDS Management Pvt. Ltd. 04 05 06 Additionally, the applicants should furnish the 3 year business plan. The entity must submit any other requisite information as prescribed by RBI. Details of directors to verify their credentials.

  12. Essential Documents forSmall Finance Bank License MUDS Management Pvt. Ltd. 07 08 09 Details of promoters and their documents. Details of name and registered office address of the entity. After verification, RBI may ask for some additional documents based on the review.

  13. Rules and Regulations forSmall Finance Bank License 01 02 Undertake basic banking services to underprivileged sections. Provide banking facilities to boost savings. 04 03 Target small business units through hi-tech, low-cost operations. Established as public limited company. MUDS Management Pvt. Ltd.

  14. Rules and Regulations forSmall Finance Bank License 05 06 Promoted by either individuals, corporate, trust/societies. Governed by RBI Act 1934. 08 07 Banking Regulation Act 1949. Considered as non-scheduled banks. MUDS Management Pvt. Ltd.

  15. Key Challenges Faced 1 2 Difficulty to maintain ideal technology platform. Naive to handle deposits. 3 4 Reduced earning initially to maintain ratios like CRR, SLR etc. Huge amount required to invest in infrastructure. MUDS Management Pvt. Ltd.

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