The Reserve Bank of India has announced VFS Capital Limited as one of the applicant under the guidelines for 'on tap' licensing of small finance banks in the private sector, the central bank said in a press release.
"During the quarter ended Dec. 31, 2024, the Reserve Bank of India has received one application under the Guidelines for ‘on tap' Licensing of Small Finance Banks in the Private Sector dated December 05, 2019 from VFS Capital Limited," the exchange filing said.
VFS Capital is a West Bengal based microfinance company. It is the first microfinance company in Eastern India and has 283 branches, with loan book of Rs 803.57 crore.
On Dec 5, 2019, the central bank had announced guidelines for 'on tap' licensing of small finance banks in the private sector. As of October 2024, there are 12 small finance banks in India.
The framework has detailed lists that companies have to comply with such as registration, licensing and regulations, the objectives of setting up of small finance banks, eligible promoter, fit and proper criteria and corporate structure among others.
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