Question

Which statement best describes the conversion rules for Payment Banks and Urban Co operative Banks (UCBs) to Small Finance Banks?

• A. Payment Banks can convert after 3 years; UCBs are not permitted to convert.
• B. Payment Banks can convert after 5 years of operation; UCBs eligible if net worth ≥₹500 crore and CAR ≥9%.
• C. Both Payment Banks and UCBs need CAR ≥12% to convert.
• D. Payment Banks can convert only in metropolitan cities; UCBs only in districts.

Answer 1

Answer:

B. Payment Banks can convert after 5 years of operation; UCBs eligible if net worth ≥₹500 crore and CAR ≥9%.

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