The Reserve Bank of India issued draft guidelines for setting up 'local feel' small banks and payment banks which will disburse small-ticket loans to farmers and businesses. The Payment banks will cater to marginalised sections of the society, including migrant labourers, for collecting deposits and remitting funds.Such banks can be set up with a minimum capital of 100 crore rupees as against 500 crore rupees required for normal commercial banks. The proposed small banks will provide a whole suite of basic banking products such as deposits and supply of credit, but in a limited area of operation. Foreign investments in these new category banks would be as per the FDI policy.