Reserve Bank of India has rejected the application for 6 banking licenses. Among them are applications related to the establishment of small finance banks. According to a PTI news, the Reserve Bank of India, explaining the reason behind this, said that these applications have been rejected after being found not suitable.
RBI said in a statement that as per the procedure laid down under the guidelines, the scrutiny of six applications has now been completed. Said that on the basis of evaluation of the application, these applicants were not found suitable for granting in-principle approval for setting up of the Bank.
Applications of these companies were rejected
The central bank said the cancellation of applications for the license included UAE Exchange and Financial Services Ltd, Repatriation Cooperative Finance and Development Bank Ltd (REPCO Bank), Sachin Bansal’s company Chaitanya India Fin Credit Pvt Ltd along with Pankaj Vaish and others. Further, small finance banks not found suitable for ‘on tap’ licensing include VSoft Technologies Pvt Ltd and Calicut City Service Co-operative Bank Ltd.
A total of 11 applications were received by the Reserve Bank.
The Reserve Bank had received 11 applications for setting up banks under the guidelines for ‘on tap’ licensing of Universal Banks and Small Finance Banks. However, out of this, licenses of only 6 applications have been checked so far.
These applications have not been investigated
The remaining applications are being scrutinized, more applications will be scrutinized soon. The applications for the remaining five licenses include West End Housing Finance Limited, Akhil Kumar Gupta, Dwar Kshetra Grameen Financial Services Pvt Ltd, Cosmia Financial Holdings Pvt Ltd, and Tally Solutions Pvt Ltd.