RBI
rejects two applications for small finance bank
The Reserve Bank of India has rejected
two more applications, including that of Dvara Kshetriya Gramin Financial
Services, for setting up small finance banks. Earlier in July 2023, it had
rejected three applications.
RBI had received about a dozen
applications to set up banks under the guidelines for 'on tap' Licensing of
Universal Banks and Small Finance Banks (SFBs).
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.
In a statement on Friday, the RBI said
the examination of two more applications for setting up a small finance bank
has been completed as per the procedure laid down under extant guidelines.
Based on the assessment of the
applications, the central bank said it did not find applicants--Dvara Kshetriya
Gramin Financial Services Private Limited and Tally Solutions Private Limited--suitable
for granting of in-principle approval to set up a small finance bank.
However, two remaining applications are
still "under examination".
In May 2022, it announced the decisions
on six applications.
In July last year, the RBI had rejected
applications of Akhil Kumar Gupta, Cosmea Financial Holdings Pvt Ltd and West
End Housing Finance Ltd.
As per the guidelines, the initial
minimum paid-up voting equity capital for a universal bank should be Rs 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.
www.economictimes.indiatimes.com
dt. 15.04.2024