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What is the minimum paid-up capital required for Small Finance Banks as per RBI guidelines?

1. Rs. 100 Cr
2. Rs. 10 Cr
3. Rs. 1 Cr
4. Rs. 200 Cr

Correct answer: Rs. 200 Cr

Solution

As per RBI's 'Guidelines for Licensing of Small Finance Banks in the Private Sector,' the minimum paid-up voting equity capital for small finance banks is ₹200 crore (₹2 billion). This is higher than the ₹100 crore required for Payment Banks.

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