RBI forms new committee for bank license, chaired by former DG Jain

Mumbai, Jan 21, 2025

RBI said that, "The secretarial support to the committee would be provided by RBI's Department of Regulation"

The Reserve Bank of India (RBI) on Monday set up a new standing external advisory committee, which will evaluate applications for universal banks and small finance banks (SFBs). The committee headed by former RBI deputy governor M K Jain as the chairperson, has five members.

Other members include Revathy Iyer, director, central board, RBI; Parvathy V Sundaram, former executive director, RBI; Hemant G Contractor, former MD, State Bank of India, and former Chairman, Pension Fund Regulatory and Development Authority; and N. S. Kannan, former MD & CEO, ICICI Prudential Life Insurance. The committee’s tenure will be for three years.

RBI said that, “The secretarial support to the committee would be provided by RBI’s Department of Regulation.”

The first committee was formed in March 2021 and was headed by former Deputy Governor Shyamala Gopinath for three years.

According to the licensing guidelines, applications for Universal Banks and Small Finance Banks will be initially screened by the Reserve Bank to ensure prima facie eligibility of the applicants which will thereafter be evaluated by the committee composed of eminent people with experience in banking, financial sector and other relevant areas.

The committee may not vet the applications of Small finance banks that have applied, or will apply for universal bank license, as their fit and proper criteria was already vetted while granting the SFB license.

Currently, Annapurna Finance and AU Small Finance Bank (AU SFB) application for universal bank license and Fino Payments Bank and VFS Capital have application for Small Finance Bank license are pending with the regulator.

[The Business Standard]