SBI economists recommend to promote regional rural banks, suggest to convert them into small finance banks
Economists at the State Bank of India (SBI) have recommended several reforms to encourage regional rural banks, including licensing them on an ‘on tap’ basis to convert them into small finance banks (SFBs).
State Bank of India (SBI) economists have recommended several reforms to encourage regional rural banks.
State Bank of India ,SBI, Economists of Regional Rural Banks (Regional Rural Banks) has recommended several reforms to encourage them, including small finance banks (Small Finance Bank) This includes granting licenses on an ‘on tap’ basis, to be changed to ‘on tap’. reserve Bank of India (RBI) In September 2018, UCBs allowed urban cooperatives and microfinance institutions to convert themselves into SFBs. Soumya Kanti Ghosh, group chief economic advisor at SBI, said in a commentary that major regional rural banks (RRBs) are still much larger than most SFBs today.
Ghosh said that allowing RRBs to convert themselves into SFBs will create equal opportunities for RRBs, UCBs (Urban Co-operative Banks) and SFBs.
Baroda UP Bank is the country’s largest RRB
The largest RRB is Baroda UP Bank, which has a book-account size of Rs 72,015 crore and is much larger than the largest SFB – AU Small Finance Bank with a business size of Rs 70,588 crore.
The second largest RRB is Karnataka Gramin Bank with a business size of Rs 54,856 crore, while the second largest SFB – Equitas has a business of just Rs 33,240 crore.
Aryavart Bank (Rs 48,649 crore) is at the third place in RRBs, while the third largest SFB is Ujjivan Small Finance Bank (Rs 27,630 crore).
Let us tell you that the country’s largest government bank keeps taking new steps to protect the money of the customers. In this episode, SBI has improved the process of withdrawing money from SBI ATM. Bank has implemented OTP based system to make cash withdrawal from ATM more secure. The bank has given this information by tweeting.
The bank said in a tweet, “Our OTP based cash withdrawal system for transactions at SBI ATMs is a vaccination against fraudsters. Protecting you from fraud will always be our top priority. It protects you from unauthorized transactions at ATMs.
SBI has also told in a tweet how to withdraw money from ATM through OTP. The bank will send an OTP to your registered mobile number. OTP is a 4 digit number that authenticates the user for a single transaction. This will protect SBI card holders from unauthorized ATM cash withdrawals.
(with PTI input)
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