RBI rejects three applications for small finance bank licenses

The RBI, in a release, said that based on the assessment of the applications, the three entities were ‘not found suitable for granting of in-principle approval to set up a small finance bank’.

In May last year, the RBI had rejected two applications received from VSoft Technologies Pvt and Calicut City Service Co-operative Bank Ltd for setting up small finance banks.

The RBI had received a total of seven applications for setting up small finance banks under the guidelines for ‘on-tap’ license.

The other two other applicants are from Dvara Kshetriya Gramin Financial Services Pvt Ltd and Tally Solutions Private Ltd.

RBI said the remaining applications are under examination.

In May 2022, the RBI did not grant in-principle approval to four entities that had applied to set up universal banks under the guidelines for on-tap licensing.

The applicants rejected were – UAE Exchange and Financial Services, The Repatriates Cooperative Finance and Development Bank Ltd (REPCO Bank), Chaitanya India Fin Credit Pvt Ltd and Pankaj Vaish and others.

In January 2023, the RBI had received an application from Bhubaneswar-based Annapurna Finance Pvt Ltd.