The RBI released names of applicants under the guidelines for ‘on tap’ Licensing of Universal Banks and Small Finance Banks in the private sector. This announcement was made on April 15th by the Central bank.
As per RBI Universal Banks covered under Guidelines for ‘on tap’ Licensing are: UAE Exchange and Financial Services Limited, Chaitanya India Fin Credit Private Limited,The Repatriates Cooperative Finance and Development Bank Limited (REPCO Bank), Shri Pankaj Vaish and others.
Whereas ‘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.
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.
The RBI announced the creation of a Standing External Advisory Committee (SEAC) last month for evaluating applications for Universal Banks and Small Finance Banks. This being part of the RBI’s earlier announced plan to give banking permits on a continuous basis, commonly known as ‘on-tap’ basis.
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.
The constitution and composition of Standing External Advisory Committee for evaluating the applications received under the afore mentioned guidelines was announced on March 22, 2021.Now the above applications will be evaluated by an RBI panel.
It was also mentioned 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 the SEAC will be for three years.
The panel has been formed 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).
Bhoi Smrutirekha Dharanidhar