RBI rejects SFB applications of Dvara Kshetriya Gramin, Tally Solutions

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The Reserve Bank of India has rejected two more applications to set up small finance banks, namely by Dvara Kshetriya Gramin Financial Services and Tally Solutions Private, the central bank said in a release.

Dvara Kshetriya Gramin Financial Services had applied for a small bank licence in April 2021 whereas Tally Solutions had applied in August 2021.

“Based on the assessment of the applications, they were not found suitable for granting of in-principle approval to set up a small finance bank,” the RBI said, adding that the remaining two applications are under examination.

The central bank has so far received 13 applications to set up a universal or small finance bank as allowed under the ‘on tap’ licensing guidelines for such banks. Of these, it has previously rejected nine other applications taking the total to 11 applications rejected.

The remaining applications was filed by Bhubaneswar-based Annapurna Finance Private for a universal bank licence in Q3 FY23. Further, Navi Mumbai-based Fino Payments sought permission to transition to a small finance bank in Q3 FY24.

In April 2021, RBI had notified that that VSoft Technologies Private, Calicut City Service Co-operative Bank, and Akhil Kumar Gupta have applied for a small finance bank licence whereas UAE Exchange and Financial Services, Repatriates Cooperative Finance and Development Bank (REPCO), Chaitanya India Fin Credit Private and Pankaj Vaish for a universal bank licence.

Following this, Cosmea Financial Holdings in August 2021 and West End Housing Finance in December 2021, applied for a small finance bank licence.

In May 2022, RBI rejected all four universal bank applications, and two small finance bank applications for VSoft Technologies and Calicut City Service Co-operative Bank. Later in July 2023, it also cancelled the SFB applications submitted by Akhil Kumar Gupta, Cosmea Financial Holdings and West End Housing Finance.

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Pooja Gupta

CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

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CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

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