New Delhi: The Reserve Bank of India (RBI) has received a total of 8 applications under the guidelines of ‘On Tap’, anytime for applying for a license. This includes four applications for universal banks offering all types of services and four for small finance banks (SFBs). Guidelines for on tap licensing to Universal Banks and SFBs in the private sector were issued on August 1, 2016 and December 5, 2019, respectively.
Universal Banks
UAE Exchange & Financial Services, The Repatriates Cooperative Finance & Development Bank Ltd. (REPCO Bank), Chaitanya Indian Fin Credit Pvt Ltd and Pankaj Vaishya and others have applied for the license of Universal Bank under the ‘On Tap’ licensing guidelines.
Small Finance Banks
At the same time, under ‘On Tap’ guidelines for Small Finance Banks, Visoft Technologies Pvt. Ltd. (VSoft Technologies Pvt), Calicut City Service Cooperative Bank Ltd., Akhil Kumar Gupta and Regional Rural Financial Services Pvt. Ltd. Has applied
According to the guidelines, the minimum paid voting equity capital for Universal Bank should be Rs 500 crore. In such a situation, the minimum net worth of the bank should be Rs 500 crore at all times. In case of SFB, the minimum paid-up voting capital / net worth should be Rs 200 crore. If an UCB wants to be voluntarily converted into SFB, then the initial requirement of net worth is Rs 100 crore. It will need to make 200 crores rupees in five years.
