RBI rejects 6 bank applications as not suitable under the Guidelines for ‘on tap’ Licensing; 5 others being examined. 

Description-: The Reserve Bank had received 11 applications to set up bank under the Guidelines for ‘on tap’ Licensing of Universal Banks and Small Finance Banks; six are already rejected, while the remaining are being examined.

The Reserve Bank on Tuesday i.e. 17^th may 2022 said that 4 applications for on-tap universal banks and 2 applications for on-tap small finance banks,  six in total, were rejected as they were not found fit.

“The examination of six applications has now been completed as per the procedure laid down under these guidelines,” the RBI said in a statement. “Based on the assessment of the applications, applicants were not found suitable for granting of in-principle approval to set up banks.”

The rejected applications include

1. Sachin Bansal-led Chaitanya India Fin Credit Private Limited

2. UAE Exchange and Financial Services Limited

3. The Repatriates Cooperative Finance and Development Bank(REPCO Bank )

4. Shri  Pankaj Vaish and others.

While applicants not found suitable under Guidelines for ‘on tap’ Licensing of Small Finance Banks are-: 

1. VSoft Technologies Private Limited  2. Calicut City Service Co-operative Bank Limited

The Reserve Bank had received 11 applications to set up bank under the Guidelines for ‘on tap’ Licensing of Universal Banks and Small Finance Banks. The remaining applications are under examination, the central bank added.

West End Housing Finance Limited, Akhil Kumar Gupta, Dvara Kshetriya Gramin Financial Services Private Limited, Cosmea Financial Holdings Private Limited, and Tally Solutions Private Limited are among the applicants.

Note:- On-tap licensing means that the window for getting a bank license from RBI is open throughout the year.