RBI rejects applications of 9 out of 12 entities that sought to set up banks

The Reserve Bank of India has rejected applications by Akhil Kumar Gupta, Cosmea Financial Holdings Pvt Ltd and West End Housing Finance Ltd to set up a microfinance bank (SFB).

In a statement, RBI said, based on the evaluation of the applications, the above-mentioned applicants were not found suitable to be granted initial approval for the establishment of a microfinance bank:

With this, the central bank rejected the applications of nine out of 12 entities that applied for a license to set up a bank under the “spot” licensing guidelines for universal banks and small finance banks.

Central Bank is examining the applications of Dvara Kshetriya Gramin Financial Services Pvt Ltd and Tally Solutions Pvt Ltd to set up SFB and Annapurna Finance for the Universal Bank.