Tag: ‘on tap’

The Reserve Bank of India has taken a step ahead ever since the guidelines on on-tap licensing were announced in early 2016.

The RBI has step up a standing external advisor committee (SEAC) under former deputy governor Shymala Gopinath to evaluate new banking licenses under on-tap application for universal and small finance banks.

The application will be scrutinised by a standing committee and NBFCs floated by corporates could be given licenses.
Apart from Gopinath as chairperson of the committee, the RBI has inducted four members Revathy Iyer who’s central board director of RBI, NPCI’s chairman B Mahapatra, Canara Bank’s former chairman T N Manoharan and SBI’s former MD & PFRDA’s former Chairman Hemant Contractor.

Recently the RBI”s internal working grou had floated a paper on the issue of new licenses to corporate groups wherein NBFCs owned by corporate groups should be allowed to set-up banks, where many in the industry saw it as opening the doors for corporates to get into the banking sector.