RBI rejects 6 applications for setting up banks

RBI rejected the applications of six entities that were seeking permission to start universal and small finance banks under the “on-tap” licence policy.

Among them is one from Sachin Bansal’s Chaitanya India Fin Credit Private Limited. The micro-lender had applied for a universal bank licence in April 2021.

“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, (six) applicants were not found suitable for granting of in-principle approval to set up banks.”

The other applications for universal bank licence that were rejected are those of former Citi banker Pankaj Vaish, Repco Bank and UAE Exchange and Financial Services. UAE Exchange was the first to apply for the licence in 2017 when the RBI made the process on-tap.

The regulator also rejected the applications of VSoft Technologies and Calicut City Service Co-operative Bank, which had sought licences for small finance banks. The names of the applicants were mentioned in the RBI’s statement.