The Reserve Bank of India (RBI) has declined six out of 11 banking and small finance bank license applications it received under the guidelines for ‘on tap’ licensing of universal banks and small finance banks (SFBs), according to an official statement.
The applications declined by the Central bank include that of Sachin Bansal's Chaitanya India Fin Credit Private Ltd.
"Based on the assessment of the applications, (six) applicants were not found suitable for granting of in-principle approval to set up banks," the RBI said.
The other applications that were not found suitable include those of UAE Exchange and Financial Services Ltd, The Repatriates Cooperative Finance and Development Bank Limited (REPCO Bank)', Shri Pankaj Vaish and others.
The remaining applications are under examination.
The guidelines for ‘on tap’ licensing of universal banks and small finance banks in the private sector were issued respectively in August 2016 and December 2019.
The constitution and composition of standing external advisory committee for evaluating the applications received under the guidelines was announced in March 2021.