The Reserve Bank today said final guidelines on Payments Banks are expected to be issued by this month-end, while norms for Small Banks may be out next month.
"RBI has prepared the final documents. It has been referred to Government of India and presently it is there. We expect, may be, Payments Banks (guidelines) by month end. In the coming month, we would be able to release final guidelines on small banks," RBI Deputy Governor S S Mundra said.
The proposed Small Banks will provide a whole suite of basic banking products such as deposits and supply of credit, but in a limited area of operation.
On the other hand, Payments Banks will offer a limited range of products such as acceptance of demand deposits and remittances of funds.
They will have a widespread network of access points, particularly in remote areas, either through their own branch network or through Business Correspondents (BCs) or through networks provided by others.
On infrastructure bonds, Mundra said RBI had provided a facilitative framework whereby they can be issued and the funds mobilised be used for the support of the sector. "We don't think that the terms of bonds are any disabling factor in issuance of bonds. Probably the issuance will pick us as demand picks up," he said.
Asked about loan growth in the system, Mundra said the credit growth is still subdued but is is expected to pick up in the fourth quarter.
"I think Deposit growth is outpacing the credit growth but as we move in fourth quarter with some signs of growth revival, probably it will have beneficial impact on the credit growth," Mundra said.
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