The RBI on April 15 released names of applicants under the guidelines for ‘on tap’ Licensing of Universal Banks and Small Finance Banks in the private sector.
Applicants under Guidelines for ‘on tap’ Licensing of Universal Banks include UAE Exchange and Financial Services Limited, The Repatriates Cooperative Finance and Development Bank Limited (REPCO Bank), Chaitanya India Fin Credit Private Limited, Shri Pankaj Vaish and others, the RBI said.
Applicants under Guidelines for ‘on tap’ Licensing of Small Finance Banks include VSoft Technologies Private Limited, Calicut City Service Co-operative Bank Limited , Shri Akhil Kumar Gupta and Dvara Kshetriya Gramin Financial Services Private Limited, the RBI said.
The RBI released guidelines for ‘on tap’ Licensing of Universal Banks and Small Finance Banks in the Private Sector, on August 1, 2016 and December 5, 2019 respectively. The constitution and composition of Standing External Advisory Committee for evaluating the applications received under the aforementioned guidelines was announced on March 22, 2021.
These applications will be evaluated by an RBI panel now.
Last month, the RBI announced the creation of a Standing External Advisory Committee (SEAC) for evaluating applications for Universal Banks and Small Finance Banks. This is part of the central bank's earlier announced plan to give banking permits on a continuous basis or what is commonly known as 'on-tap' basis.
The RBI set up the panel under the chairmanship of former RBI deputy governor, Shyamala Gopinath.
Other members of the committee include Revathy Iyer, Director, Central Board, Reserve Bank of India, B. Mahapatra, former Executive Director, Reserve Bank of India and presently Chairman, National Payments Corporation of India (NPCI), T.N. Manoharan, former Chairman, Canara Bank and Hemant G. Contractor, former MD, State Bank of India and former Chairman, Pension Fund Regulatory and Development Authority (PFRDA).
The RBI guidelines for 'on-tap' licensing of universal banks in the private sector dated August 1, 2016 and Guidelines for 'on tap' Licensing of small finance banks in the private sector dated December 5, 2019, had indicated that the applications will be initially screened by the RBI to ensure prima facie eligibility of the applicants.
It was also stated that an SEAC comprising eminent persons with experience in banking, financial sector and other relevant areas, will evaluate the applications thereafter and that the constitution of the SEAC will be announced by Reserve Bank. The tenure of this SEAC will be for three years, the RBI had said.
In the last round, the RBI gave two universal banking licences in 2014 to IDFC First Bank and Bandhan Bank. It gave 10 small finance bank licences in 2018 which include Janalakshmi Financial Services, Ujjivan Financial Services based in Bengaluru, RGVN (North East) Microfinance based in Guwahati among others.
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