RBI grants in-principle approval to 10 applicants for small finance banks

Zee Media Bureau

New Delhi: The Reserve Bank of India on Wednesday decided to grant “in-principle” approval to the following 10 applicants to set up small finance banks under the “Guidelines for Licensing of Small Finance Banks in the private sector” (Guidelines) issued on November 27, 2014.

Names of selected applicants

    Au Financiers (India) Ltd., Jaipur

    Capital Local Area Bank Ltd., Jalandhar

    Disha Microfin Private Ltd., Ahmedabad

    Equitas Holdings P Limited, Chennai

    ESAF Microfinance and Investments Private Ltd., Chennai

    Janalakshmi Financial Services Private Limited, Bengaluru

    RGVN (North East) Microfinance Limited, Guwahati

    Suryoday Micro Finance Private Ltd., Navi Mumbai

    Ujjivan Financial Services Private Ltd., Bengaluru

    Utkarsh Micro Finance Private Ltd., Varanasi

The “in-principle” approval granted will be valid for 18 months to enable the applicants to comply with the requirements under the guidelines and fulfil other conditions as may be stipulated by the RBI.

On being satisfied that the applicants have complied with the requisite conditions laid down by it as part of “in-principle” approval, the RBI would consider granting them a licence for commencement of banking business under Section 22(1) of the Banking Regulation Act, 1949.

Until a regular licence is issued, the applicants cannot undertake any banking business.