The Reserve Bank of Indi (RBI) on Monday announced the creation of a Standing External Advisory Committee 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 to candidates, a process that is is commonly known as 'on-tap' licensing.
The RBI has appointed former RBI deputy governor, Shyamala Gopinath as the Chairperson of the panel.
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 a Standing External Advisory Committee (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.
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