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10.
Other
prudential
norms and
regulations
As applicable to existing commercial
banks including maintenance of
CRR and SLR; Max loan size and
investment exposure to borrowers/
issuers restricted to 15% of capital;
At least 50% of portfolio to
constitute loans and advances up to
Rs. 25 lakh
As application to commercial
banks
Exposure limits set at a lower
fraction of capital than for SCBs;
Allowing greater ticket size with
growth; Interest rates deregulated;
Strict norms for self lending to
promoters
11.
Governance
Majority of independent directors;
Fit and proper criteria for Directors
as issued by RBI
Majority of independent
directors; Fit and proper
criteria for Directors as issued
by RBI
Fit and proper criteria
12.
Supervision
and Regulation
Department of Banking
Supervision, RBI (RRBs and
Coops which are closer to
LAB in nature are supervised
through NABARD);
Regulation earlier with RPCD,
later shifted to DBOB
Need greater monitoring;
Regulatory capacity should adapt to
the needs
13.
Process
High tech and low cost; high
powered customer grievance
mechanism
Low cost structure and low staffing
costs will allow small loans to be
profitable
14.
Support
Infrastructure
Creation of low cost tech platforms;
Banks may be encouraged to
functions and a centralized skill
based
Sl.
No
Broad Policy
Element
Draft Small Bank Guidelines
(July 2014)
Local Area Bank Guidelines
(June 2014)
Raghuram Rajan Committee
