The Reserve Bank of India has rejected one application for banking licence, details of which will be released soon, Governor Sanjay Malhotra on June 6 said without divulging any details of the company, or the licence that had been applied.
So far, AU Small Finance and Ujjivan Small Finance have submitted an application to the RBI for a universal banking licence, while Fino Payments Bank has applied for a small finance bank licence. Two non-banking finance companies - Annapurna Finance and VFS Capital – too have applied for a banking licence.
To evaluate the bank licence application, the RBI on January 20 had set up a Standing External Advisory Committee (SEAC).
The committee is chaired by former RBI Deputy Governor MK Jain, along with RBI central board director Revathy Iyer, former RBI ED Parvathy V Sundaram, former SBI MD Hemant Contractor, and, former MD and CEO of ICICI Prudential Life NS Kannan.
The SEAC was set up by the RBI with the primary responsibility of assessing the eligibility and suitability of applicants seeking to operate these types of banks in India.
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