RBI Rejects Bank Licence Applications By Sachin Bansals Navi, Five Others

The Reserve Bank of India has rejected six out of 11 pending applications for a universal bank or small finance bank licence. An application by Sachin Bansal's Navi Technologies, via a group entity, and one by veteran Citibanker Pankaj Vaish are among those that did not make the cut.The remaining applications remain under examination.The applications rejected for a universal bank include:UAE Exchange and Financial Services Ltd.The Repatriates Cooperative Finance and Development Bank Ltd. (REPCO Bank)Chaitanya India Fin Credit Private Ltd.Pankaj Vaish and others'This is not the end of the road for us,' said Sachin Bansal, chairman of the Navi Group on the sidelines of a press conference. 'We will wait to see RBI's written responses and explore other options available to us, including a reapplication,' he said.The regulator has also rejected two applications for small finance bank licences. These include:VSoft Technologies Private Ltd.Calicut City Service Co-operative Bank Ltd.The regulator does not disclose the reason behind rejection of an application.In April 2021, the RBI had disclosed that it has received eight applications for universal and small bank licences under the on-tap licencing regime. It included four universal bank licence applications. All of these have now been rejected.Another four applications had been received for small finance bank licences. Of those, two have been rejected. Two applications remain under consideration—Akhil Kumar Gupta; Dvara Kshetriya Gramin Financial Services Private Ltd.In August, the RBI disclosed two more applications from Cosmea Financial Holdings Private Ltd. and Tally Solutions Private Ltd. These remain under examination as well. In December, it said that West End Housing Finance Ltd has also applied for a small finance bank licence.'The main criteria of judging any application is fit and proper,' said Ashvin Parekh of Ashvin Parekh Advisory Services. The regulator also does thorough checks on the business plan and the model. 'One of the major aspect of fit and proper is the compliance record of the promoter and all the entities with which they are associated. In case of overseas promoters the regulator checks their background with overseas authorities to obtain a proper feedback on compliance record,' Parekh added.A banking sector consultant, who spoke on condition of anonymity, said the regulator appears to be keen on a diversified set of promoters rather than a single entity or individual. The regulator would also be looking for adequate banking experience, a factor that may have gone against some of the technology-focused firms that applied.

RBI Rejects Bank Licence Applications By Sachin Bansal's Navi, Five Others

RBI has rejected six of eleven applications for bank licences pending with it.

RECOMMENDED FOR YOU

CFO Leaders: The Making Of Five Star CFOs

Stocks Rise, Treasuries Fall on Stimulus Bets: Markets Wrap

Stocks End Record-Setting Week With Further Gains: Markets Wrap

The Mutual Fund Show: The Dos And Don’ts Of Online Investing

POPULAR

RBI Rejects Bank Licence Applications By Sachin Bansal's Navi, Five Others

RBI has rejected six of eleven applications for bank licences pending with it.

RECOMMENDED FOR YOU

CFO Leaders: The Making Of Five Star CFOs

Stocks Rise, Treasuries Fall on Stimulus Bets: Markets Wrap

Stocks End Record-Setting Week With Further Gains: Markets Wrap

The Mutual Fund Show: The Dos And Don’ts Of Online Investing

POPULAR

Air India Crash Report: "Not Enough To Determine Cause", Says Ex-AAIB Chief

Swiatek Claims Maiden Wimbledon Title With 6-0, 6-0 Win

Landmark Ruling For India's GI Regime: Pisco Judgment And Its Far-Reaching Impact

Visa Integrity Fee May Impact US-Bound Students, Tourists: Consultants

Environment Ministry Eases SO2 Emission Norms, Exempts Large Number Of Coal Plants