Therefore, to ensure participation of these banks in the developmental  BIS central bankers’ speeches  7  needs of the economy, appropriate modifications may have to be set keeping in view the nature of the business model. 43. Accordingly, for Small Finance Banks we prescribed a higher level of Priority Sector Lending requirement at 75%, as the very purpose is financial inclusion.
For Payments Banks, as they will not have lending activities, we have ensured their participation in development by prescribing 75% investment in Government securities. Elimination of regulatory arbitrage 44.