According to the Organic Law of Georgia on the National Bank of Georgia, a microbank is a legal entity established in the form of a joint-stock company, licensed by the National Bank, and engaged in banking activities as defined by the Law of Georgia on the Activities of Microbanks.

The list of permitted activities for licensed microbanks in Georgia is defined by Article 3 of the Law of Georgia on the Activities of Microbanks, based on which a microbank is authorized to attract interest-bearing and non-interest-bearing deposits (demand, term, and other types) within the limits defined by the Law of Georgia on the Deposit Insurance System, grant loans (only in national currency), etc.

The business model of a microbank is based on lending to income-generating individuals from entrepreneurial activities (including agricultural activities). Specifically, at least 70 percent of the microbank's credit portfolio must consist of loans issued for entrepreneurial purposes and/or loans whose repayment source is income from entrepreneurial activities.

The management and operational activities of a microbank are carried out in accordance with justified administrative and accounting procedures under Georgian legislation, the conditions and restrictions attached to the microbank's license, as well as the regulations, rules, and instructions established by the National Bank.

The  requirements related to the supervision and regulation of microbanks are defined by the Organic Law of Georgia on the National Bank of Georgia, the Law of Georgia on the Activities of Microbanks, and other subordinate acts.