Swamy demands ED probe into RBI licences for small banks

Senior BJP leader Subramanian Swamy today asked Prime Minister Narendra Modi to order a probe by Enforcement Directorate into in-principle approvals given by RBI to 10 entities to set up small finance banks. Out of 72 applicants, the Reserve Bank gave in-principal approvals to 10 entities, mostly micro finance institutions, to set up small finance banks to provide basic banking services to small farmers and micro industries. "More than half of the successful applicants were lacking the eligibility criteria as set out in the guidelines...You (the Prime Minister) may consider putting these 'in principal approvals' on hold till a probe by the ED is conducted and concluded," Swamy said in a letter to Modi. Most of the successful applicants, he added, were funded and supported by "1 or 2 common foreign entities run by specific community"."Therefore it is in public interest for the PMO to check the credibility of the selection process for small finance bank since the RBI has failed to perform the duty diligently and take action to rectify the mala fide negligence," Swamy added.