The Guidelines also said that existing Non-Banking Finance Companies (NBFCs), Micro Finance Institutions (MFIs), and LABs that are owned and controlled by residents can also opt for conversion into small finance banks. We received 72 applications and as you would have noted, 41 among them are existing NBFCs, MFIs and LABs and 12 are individuals / professionals.
The MFI-NBFCs registered with us are 65 and their resources are limited to their own equity, borrowing from banks and market borrowings. They are not permitted to access low cost or why, even any deposit. Despite such constraints, they have serviced 25.5 million accounts / customers and had a credit portfolio of ₹ 277.34 billion as at end March 2015.