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The Reserve Bank of India, vide press release 2021-2022/61 dated 15.04.2021, released the names of applicants under the Guidelines for ‘on tap’ Licensing of Universal Banks and Small Finance Banks. As on date, applications for Universal Banks and Small Finance Banks, under the aforementioned guidelines, have been received by the Reserve Bank from the following applicants:

Applicants under Guidelines for ‘on tap’ Licensing of Universal Banks

  1. UAE Exchange and Financial Services Limited
  2. The Repatriates Cooperative Finance and Development Bank Limited (REPCO Bank)
  3. Chaitanya India Fin Credit Private Limited
  4. Shri Pankaj Vaish and others

Applicants under Guidelines for ‘on tap’ Licensing of Small Finance Banks

  1. VSoft Technologies Private Limited
  2. Calicut City Service Co-operative Bank Limited
  3. Shri Akhil Kumar Gupta
  4. Dvara Kshetriya Gramin Financial Services Private Limited

It may be recalled that the Guidelines for ‘on tap’ Licensing of Universal Banks and Small Finance Banks in the Private Sector, were issued on August 1, 2016 and December 5, 2019 respectively. The constitution and composition of Standing External Advisory Committee for evaluating the applications received under the aforementioned guidelines was announced on March 22, 2021.

For a universal bank, the initial minimum paid-up voting equity capital/ net worth has been set at ₹500 crore. Thereafter, the bank have to maintain a minimum net worth of ₹500 crore at all times.

For a SFB, the minimum paid-up voting equity capital/ net worth is ₹200 crore. For Urban Co-operative Banks desirous of voluntarily transiting into SFBs, the initial requirement of net worth has been set at ₹100 crore, which will have to be increased to ₹200 crore within five years from the date of commencement of business.

Source: rbi.org

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