The Reserve Bank has rejected the application of Chaitanya India Fin Credit Private Limited, a microfinance entity of Navi Technologies, for on-tap universal private bank licenses and small finance bank (SFB).
In a statement released on Wednesday, the bank said it had received 11 applications to set up a bank under the Guidelines for ‘on tap’ Licensing of Universal Banks and Small Finance Banks. The names of these applicants were announced via press releases on April 15, August 30, and December 31, 2021.
The news comes on the same day Navi Technologies announced the public issuance of its non-convertible debentures (NCDs) to raise Rs 600 crore in debt.
“We are going to evaluate the written response and chart out our next course of action. A lot of options are there in front of us and there are many things to explore like reapplying. The news is just out and we will have to wait for RBI’s written responses and then respond,” said Sachin Bansal during a virtual meet to announce the issue of the NCDs.
(Photo credit: AFP)
“The examination of six applications has now been completed as per the procedure laid down under these guidelines,” said the RBI.
Based on the assessment of the applications, all six reviewed applicants were not found suitable for granting of in-principle approval to set up banks, including UAE Exchange and Financial Services Limited, The Repatriates Cooperative Finance and Development Bank Limited (REPCO Bank), Chaitanya India Fin Credit Private Limited, Shri Pankaj Vaish and others, VSoft Technologies Private Limited, and Calicut City Service Co-operative Bank Limited.
The remaining five applications are under examination, it added.
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