RBI Rejects All 4 Applications for On-tap Universal Bank, Including UAE Exchange and REPCO Bank
Moneylife Digital Team 17 May 2022
The Reserve Bank of India (RBI) on Tuesday rejected all four applications it received for ‘on-tap’ licensing of universal banks (UBs). UAE Exchange and Financial Services Ltd and the Repatriates Cooperative Finance and Development Bank Ltd (REPCO Bank) are the two prominent names whose applications for a UB were not found suitable. RBI also rejected two applications for ‘on-tap’ licensing of small finance banks (SFBs). The central bank is examining five applications for SFBs.
 
RBI has received 11 applications, including four for UBs and seven for SFBs. It completed an examination of six applicants as per the procedure laid down under these guidelines.
 
For UB licensing, RBI says four applications from UAE Exchange and Financial Services, REPCO Bank, Chaitanya India Fin Credit Pvt Ltd and Pankaj Vaish and others were not found suitable under the guidelines. 
 
RBI did not find anyone out of the four applicants suitable for UB, so there would be no new entrant in this segment unless the central bank decides to call again for applications. 
 
Applications of VSoft Technologies Pvt Ltd and Calicut City Service Co-operative Bank Ltd were also not found suitable under the guidelines for SFB, RBI says. 
 
Apart from VSoft Technologies and Calicut City Service Co-op Bank, others who had filed applications for SFB include Akhil Kumar Gupta, Dvara Kshetriya Gramin Financial Services Pvt Ltd, Cosmea Financial Holdings Pvt Ltd, West End Housing Finance Ltd and Tally Solutions Pvt Ltd.
 
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