RBI receives 8 pleas for setting up banks

MUMBAI: The Reserve Bank on Thursday said it has received four applications each under the guidelines for ‘on tap’ licensing of universal banks and small finance banks (SFBs).

UAE Exchange and Financial Services Limited, The Repatriates Cooperative Finance and Development Bank Limited (REPCO Bank), Chaitanya India Fin Credit Private Limited, and Pankaj Vaish and others, are the applicants under the guidelines for ‘on tap’ licensing of universal banks. Applicants under guidelines for ‘on tap’ licensing of SFBs are VSoft Technologies Private Limited, Calicut City

Service Co-operative Bank Limited, Akhil Kumar Gupta, and Dvara Kshetriya Gramin Financial Services Private Limited.

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.

As per the guidelines, the initial minimum paid-up voting equity capital for a universal bank should be 500 crore. Thereafter, the bank should have a minimum net worth of Rs 500 cr at all times.

The minimum paid-up voting capital/net worth for SFBs should be Rs 200 cr.