On Thursday Reserve Bank of India said that Eight institutions and individual have applied for licences to set up universal banks and small finance banks. UAE Exchange and financial Services Ltd, Repatriates Cooperative Finance and Development Bank Ltd, Chaitanya India Fin Credit Pvt Ltd, an entity owned by Flipkart co-founder Sachin Bansal and Pankaj Vaidh they have applied for the licence for Universal banks. Among these UAE had applied for banking licence unsuccessfully in 2017.
Moreover, Vsoft Technologies Pvt Ltd, Calicut City Services, cooperative bank Ltd, Akhil Kumar Gupta, and Dvasa Kshatriya Gramin Financial Services Ltd also have applied for setting up Small Finance Bank. In Aug 2016, RBI released guidelines for on tap licensing for universal banks.
Existing non-banking financial companies controlled by residents and with a successful track records for at least 10 years which were allowed to apply for licences.
RBI released a policy discussion paper on banking structure in India that favoured an on tap licensing policy to boost competition and bring in new ideas into the system.