On July 4, 2023, the Reserve Bank of India (RBI) rejected applications for the establishment of small financing institutions in the private sector from Cosmea Financial Holdings, West End Housing financing, and Akhil Kumar Gupta.
In a statement, the RBI stated that the three firms were “not found suitable for granting of in-principle approval to set up a small finance bank” based on the evaluation of the applications.
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.
In total, seven applications had been submitted to the RBI for the establishment of small finance banks. the other two candidates are from Tally Solutions Private Ltd. and Dvara Kshetriya Gramin Financial Services Pvt. According to sources, the remaining applications are being reviewed.
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.
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