Small finance banks seek doubling of cap on loan size to ₹50 lakh

Small finance banks seek doubling of cap on loan size to ₹50 lakh

Small finance banks have approached the Reserve Bank of India with key requests. They want the regulator to ease a rule requiring half their loans to be under ₹25 lakh. They also seek permission to participate in co-lending arrangements. These changes aim to help SFBs expand their reach and serve more businesses, particularly MSMEs.

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