RBI receives 8 applications for setting up banks under ‘on tap’ licensing

By: |
April 15, 2021 9:24 PM

UAE Exchange and Financial Services Limited, The Repatriates Cooperative Finance and Development Bank Limited (REPCO Bank), Chaitanya India Fin Credit Private Limited, and Pankaj Vaish and others, are the applicants under the guidelines for 'on tap' licensing of universal banks.

Reserve Bank of IndiaLast month, the RBI had announced a Standing External Advisory Committee, headed by former RBI deputy Governor Shyamala Gopinath, for evaluating applications for universal banks and small finance banks.

The Reserve Bank on Thursday said it has received four applications each under the guidelines for ‘on tap’ licensing of universal banks and small finance banks.

UAE Exchange and Financial Services Limited, The Repatriates Cooperative Finance and Development Bank Limited (REPCO Bank), Chaitanya India Fin Credit Private Limited, and Pankaj Vaish and others, are the applicants under the guidelines for ‘on tap’ licensing of universal banks.

Applicants under guidelines for ‘on tap’ licensing of small finance banks (SFBs) are VSoft Technologies Private Limited, Calicut City Service Co-operative Bank Limited, Akhil Kumar Gupta, and Dvara Kshetriya Gramin Financial Services Private Limited.

The guidelines for ‘on tap’ licensing of universal banks and SFBs in the private sector were issued on August 1, 2016, and December 5, 2019, respectively.

As per the guidelines, the initial minimum paid-up voting equity capital for a universal bank should be 500 crore. Thereafter, the bank should have a minimum net worth of Rs 500 crore at all times. The minimum paid-up voting capital/net worth for SFBs should be Rs 200 crore.

In case of urban co-operative banks desirous of voluntarily transiting into SFBs, the initial requirement of net worth is Rs 100 crore, which will have to be increased to Rs 200 crore within five years.

Last month, the RBI had announced a Standing External Advisory Committee, headed by former RBI deputy Governor Shyamala Gopinath, for evaluating applications for universal banks and small finance banks.

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