RBI issues first-round queries for payment-bank applicants

The Reserve Bank of India had recently issued a list of applicants who had applied for payment and small bank licences. Ever since, the central bank is rigorously scanning through all proposals. CNBC-TV18's Manasvi Ghelani learns that the Nachiket Mor committee at the RBI has issued a list of queries to all 41 payment bank applicants to make the selection process transparent.

Sources say that, as part of the first round of queries, the central bank has questioned applicants on the three-year history of their businesses as well as future expansion plans.

The queries relate to the number of number of transactions the applicants have undertaken, their business valuation, as well physical distribution points and service delivery.

According to sources, the queries were issued last week and the central bank has heard back from most applicants.

The proposed payment bank will be an institution that will allow for exchange of payment services but will be barred from taking deposits or making loans. Several companies that have a wide customer base, such as retail chain or telecom operators, have applied for such licences.

The RBI is yet to reach out to applicants for the small bank licence, it is learnt.