RBI Latest News: The Reserve Bank of India (RBI) has rejected 6 out of 11 banking applications. The remaining 5 applications remain a part of the licensing process. With this, the hope of opening five new banks in the country has increased..
RBI On Banking Application: The Reserve Bank of India (RBI) has rejected six applications related to the formation of new banks in the country. In the application rejected by the RBI, the application of six companies, including Chaitanya India Fin Credit Private Limited, led by Flipkart co-founder Sachin Bansal, has been rejected. .
Canceled if not found ‘suitable’
Among the applications that have been rejected by RBI, there are also applications related to Small Finance Bank. It was told by RBI that these applications have been canceled after being found not ‘suitable’. The central bank said, ‘The scrutiny process of these applications has been completed according to the set standards. During this it was found that these applications are not fit for in-principle approval for setting up of banks.
These applications were rejected
The applications found inappropriate in the bank category were from UAE Exchange & Financial Services Limited, Repatriates Cooperative Finance & Development Bank Limited, Chaitanya India Fin Credit Private Limited and Pankaj Vaish and others. Significantly, in September 2019, Sachin Bansal had bought a major stake in Chaitanya with an investment commitment of Rs 739 crore.
5 out of 11 Application Part of the License Process
Calicut City Service Co-operative Bank Ltd. in the category of Small Finance Banks. and VSoft Technologies Pvt. Ltd. The application was also not found correct. A total of 11 applications were received by the Reserve Bank in the Bank and Small Finance category. The remaining 5 applications remain a part of the licensing process. The central bank said that the rest of the application is being investigated. The remaining applications are related to small finance banks.
These applications have been made by West End Housing Finance Limited, Akhil Kumar Gupta, Regional Rural Finance Services Private Limited, Cosmi Financial Holdings Private Limited and Tele Solutions Private Limited.