Mumbai, Nov 27 (IANS): The apex bank Thursday issued final guidelines for setting up of 'niche' or payment banks which will cater to needs of small savings accounts, remittance services, low income households, small businesses and other unorganised sector entities.

Under the guidelines, the Reserve Bank of India has invited individuals, non-banking finance companies (NBFCs), corporate business correspondents (BCs), mobile telephone companies, super-market chains, and real sector cooperatives to apply for licence to set up payments banks.

RBI said an existing joint venture (JV) with a scheduled commercial banks can set up a payments bank.

The guidelines said the objectives of setting up of small finance banks will be to further financial inclusion by providing savings facilities and supply of credit to small business units; small and marginal farmers; micro and small industries; and other unorganised sector entities, through high technology-low cost operations.

RBI added that the minimum paid-up equity capital for payments banks is Rs.100 crore.

"RBI will create a framework for licensing small banks and other differentiated banks. Differentiated banks serving niche interests, local area banks, payment banks etc. are contemplated to meet credit and remittance needs of small businesses, unorganized sector, low income households, farmers and migrant work force," the country's central bank said in a statement.