Bank idea explodes; RBI says ‘no’ to Flipkart co-founder

The Reserve Bank of India (RBI) has rejected the application of Sachin Bansal, co – founder and former chairman of Flipkart. Bansal had applied for the bank through his microfinance company Chaitanya India Fin Credit Pvt Ltd. However, the Central Bank rejected the application on the ground that it was not suitable at present. The RBI has filed five more applications with Bansal. Rejected. The RBI took action after examining all the six applications as per the procedures prescribed in the guidelines. RBI With the bank checking its dream, Bansal’s new moves will be crucial.

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The Reserve Bank of India (RBI) has received 11 applications for the formation of a bank as per the guidelines for issuing ‘on tap’ licenses to universal banks and small finance banks. Of these, six were rejected. The central bank added that the remaining applications were being considered. Chaitanya India Fin Credit Pvt. Applications from Exchange and Financial Services Limited, Repatriates Co-operative Finance and Development Bank Limited (Repco Bank) and Pankaj Wise were rejected. The RBI also said that V Soft Technologies Pvt Ltd and Calicut City Service Co-operative Bank Ltd were not compliant with the ‘on tap’ licensing guidelines of small finance banks.

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All the five applications currently being considered are for setting up a small finance bank. The applications are from West End Housing Finance Limited, Akhil Kumar Gupta, Dwara Kshetriya Grameen Financial Services Pvt Ltd, Cosmia Financial Holdings Pvt Ltd and Tally Solutions Pvt Ltd. According to the ‘on tap’ licensing guidelines issued by the RBI in August 2016 for universal private sector banks, large industrial enterprises cannot apply for a bank permit. In addition, qualified promoters must have at least 10 years of experience in the financial sector.