The Reserve Bank on Tuesday said it has rejected six applications seeking permits for setting up small finance banks and universal banks.The apex bank had received 11 applications seeking licences to set up bank under the guidelines for ‘on tap’ licensing of universal banks and small finance banks.
“The examination of six applications has now been completed as per the procedure laid down under these guidelines. Based on the assessment of the applications, following applicants were not found suitable for granting of in-principle approval to set up banks,” the RBI said in a statement.
The applicants not found suitable under guidelines for ‘on tap’ licensing of universal banks are — UAE Exchange and Financial Services Limited; The Repatriates Cooperative Finance and Development Bank Limited (REPCO Bank); Chaitanya India Fin Credit Private Limited; and Shri Pankaj Vaish and others.
Those not found suitable under guidelines for ‘on tap’ licensing of small finance banks are — VSoft Technologies Private Limited and Calicut City Service Co-operative Bank Limited.
“The remaining applications are under examination,” the Reserve Bank said.
The remaining five applicants for small finance bank licences under examination are — Akhil Kumar Gupta, Dvara Kshetriya Gramin Financial Services Private Limited, Cosmea Financial Holdings Private Limited, Tally Solutions Private Limited and West End Housing Finance Limited.
Under the guidelines for ‘on tap’ licensing of universal banks in the private sector issued by the RBI in August 2016, large industrial houses cannot apply for bank permits. Also, eligible promoters need to have at least 10 years of experience in the financial sector.
