Eight institutions and individuals have applied for on tap licences to set up for the universal banks and small finance banks, the Reserve Bank of India said on Thursday. And then this coming weeks after RBI set up an advisory panel, led by former deputy governor Shyamala Gopinath to evaluate applications for universal and small finances banks, which are mandated to focus on priority sector lending and small loans. The last time RBI handed out universal bank licences was in 2015 when it cleared IDFC Ltd. and Bandhan Financial applications.
In August 2016, RBI released guidelines for on-tap licensing for universal banks. The among eligible promoters for banks were resident professionals who have 10 years in experience in banking and financial branch.
Existing non-banking financial companies controlled by residents and with a successful track report for 10 years were also allowed to apply for licences. In August 2013 RBI released a policy discussing a bank structure in India that favoured an on tap licencing policy to boost competition and bring in new ideas into the system.