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