An SFB is primarily set up to undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections, including small business units, small and marginal farmers, micro and small industries, and unorganised sector entities.
The transfer includes Rs 1.23 lakh crore of surplus for 2018-19 and Rs 52,637 crore of excess provisions identified under a revised Economic Capital Framework (ECF). It is over three times the five-year average of Rs 53,000 crore.
After the customary post-budget meeting with Finance Minister Nirmala Sitharaman, he said the system has sufficient liquidity and the Budget for 2019-20 has made provision for shadow banking (NBFC) sector.
It said the RBI would examine the need to consider uninterrupted and round-the-clock availability of various payment systems, gradual enhancement of limits, including differential day-night, holiday limits for transactions, subject to risk management and liquidity management.