RBI Announces Two Companies Ineligible For ‘On Tap’ Licensing Of Small Finance Banks
The Reserve Bank of India (RBI) has concluded its assessment of two more applications for setting up small finance banks under the guidelines for ‘on tap’ licensing of Universal Banks and Small Finance Banks.
Following a rigorous examination process, the central bank announced that, it has determined that two applicants are not deemed suitable for the granting of in-principle approval to establish a small finance bank. The ineligible entities are: Dvara Kshetriya Gramin Financial Services Private Limited and Tally Solutions Private Limited.
The examination of the remaining two applications is ongoing, with further updates expected in due course.
This decision comes after the RBI received a total of 13 applications for bank establishment, as previously disclosed in press releases on various dates. While nine applications were previously addressed and decisions announced, the recent evaluation has led to the identification of two entities deemed ineligible for progressing with their small finance bank plans.
The RBI”s commitment to upholding stringent standards in the banking sector underscores the importance of ensuring the suitability and reliability of applicants in contributing to the financial landscape of the country.
Earlier, UAE Exchange and Financial Services Limited, The Repatriates Cooperative Finance and Development Bank Limited (REPCO Bank), Chaitanya India Fin Credit Private Limited, Shri Pankaj Vaish and others, VSoft Technologies Private Limited, Calicut City Service Co-operative Bank Limited, Shri Akhil Kumar Gupta, Cosmea Financial Holdings Private Limited and West End Housing Finance Limited were found not suitable under guidelines for ‘on tap’ Licensing of Universal and Small Finance Banks.
Universal Banks are full-service banks that offer a wide range of financial services, including deposits, loans, investments, and other banking products to retail, corporate, and institutional customers. These banks have a broader scope of operations compared to specialized banks and are typically larger in scale. Examples of Universal Banks in India include State Bank of India (SBI), HDFC Bank, ICICI Bank, and others.
Small Finance Banks are specialized banks primarily focused on providing financial services to underserved and unserved sections of the population, including small businesses, micro-enterprises, small farmers, and low-income households.
