Explanation:

* Reserve Bank of India comes out with draft norms for ‘on-tap’ licensing of Small Finance Banks. * The RBI may allow existing payments banks to convert into small finance banks (SFBs) if they meet the eligibility criteria, according to the RBI’s draft guidelines for ‘on-tap’ licensing for SFBs. * In the draft guidelines for SFBs, the RBI has proposed doubling the minimum paid-up equity capital to ?200 crore and lowering the promoter’s stake to 15 per cent in 15 years. * To encourage urban co-operative banks (UCBs) to convert into SFBs, the RBI has pegged the minimum net worth lower at ?100 crore from the date of commencement of business.