{"id":3765,"date":"2025-01-24T10:55:26","date_gmt":"2025-01-24T05:25:26","guid":{"rendered":"https:\/\/kreditbazar.com\/blog\/?post_type=news&#038;p=3765"},"modified":"2025-01-24T10:56:36","modified_gmt":"2025-01-24T05:26:36","slug":"rbi-establishes-new-advisory-committee-for-bank-licenses","status":"publish","type":"news","link":"https:\/\/kreditbazar.com\/blog\/news\/rbi-establishes-new-advisory-committee-for-bank-licenses\/","title":{"rendered":"RBI Establishes New Advisory Committee for Bank Licenses"},"content":{"rendered":"<div class=\"pvc_clear\"><\/div><p id=\"pvc_stats_3765\" class=\"pvc_stats total_only  \" data-element-id=\"3765\" style=\"\"><i class=\"pvc-stats-icon small\" aria-hidden=\"true\"><svg aria-hidden=\"true\" focusable=\"false\" data-prefix=\"far\" data-icon=\"chart-bar\" role=\"img\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\" class=\"svg-inline--fa fa-chart-bar fa-w-16 fa-2x\"><path fill=\"currentColor\" d=\"M396.8 352h22.4c6.4 0 12.8-6.4 12.8-12.8V108.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v230.4c0 6.4 6.4 12.8 12.8 12.8zm-192 0h22.4c6.4 0 12.8-6.4 12.8-12.8V140.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v198.4c0 6.4 6.4 12.8 12.8 12.8zm96 0h22.4c6.4 0 12.8-6.4 12.8-12.8V204.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v134.4c0 6.4 6.4 12.8 12.8 12.8zM496 400H48V80c0-8.84-7.16-16-16-16H16C7.16 64 0 71.16 0 80v336c0 17.67 14.33 32 32 32h464c8.84 0 16-7.16 16-16v-16c0-8.84-7.16-16-16-16zm-387.2-48h22.4c6.4 0 12.8-6.4 12.8-12.8v-70.4c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v70.4c0 6.4 6.4 12.8 12.8 12.8z\" class=\"\"><\/path><\/svg><\/i> <img decoding=\"async\" width=\"16\" height=\"16\" alt=\"Loading\" src=\"https:\/\/kreditbazar.com\/blog\/wp-content\/plugins\/page-views-count\/ajax-loader-2x.gif\" =0 title=\"\"><\/p><div class=\"pvc_clear\"><\/div>\n<p>The <a href=\"https:\/\/www.rbi.org.in\/\" target=\"_blank\" rel=\"noopener\">Reserve Bank of India (RBI)<\/a> has announced the formation of a new <strong>Standing External Advisory Committee (SEAC)<\/strong> to assess applications for licenses for <strong>Universal Banks and Small Finance Banks (SFBs)<\/strong>. The committee, which comprises five distinguished members from the banking and financial sectors, is chaired by <a href=\"https:\/\/en.wikipedia.org\/wiki\/Mahesh_Kumar_Jain\" target=\"_blank\" rel=\"noopener\">M.K. Jain<\/a>, the former deputy governor of the RBI.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Members of the Advisory Committee<\/strong><\/h2>\n\n\n\n<p>The newly formed committee includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>M.K. Jain<\/strong>: Chairperson and former Deputy Governor, RBI.<\/li>\n\n\n\n<li><strong>Revathy Iyer<\/strong>: Director, Central Board, RBI.<\/li>\n\n\n\n<li><strong>Parvathy V. Sundaram<\/strong>: Former Executive Director, RBI.<\/li>\n\n\n\n<li><strong>Hemant G Contractor<\/strong>: Former Managing Director, State Bank of India, and former Chairman, Pension Fund Regulatory and Development Authority.<\/li>\n\n\n\n<li><strong>N.S. Kannan<\/strong>: Former Managing Director and CEO, ICICI Prudential Life Insurance.<\/li>\n<\/ul>\n\n\n\n<p>The committee is set to function for a tenure of three years, during which it will evaluate the eligibility of applicants for bank licenses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Committee\u2019s Role and Responsibilities<\/strong><\/h2>\n\n\n\n<p>As per the RBI&#8217;s licensing guidelines, the applications for Universal Banks and Small Finance Banks will first undergo initial screening by the Reserve Bank to ensure that they meet the basic eligibility criteria. Post this preliminary check, the committee will conduct a detailed evaluation of the applications.<\/p>\n\n\n\n<p>The committee is designed to leverage the expertise of its members, who have extensive experience in banking, financial services, and regulatory frameworks. This ensures a robust and transparent evaluation process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Support from RBI<\/strong><\/h2>\n\n\n\n<p>The RBI stated that the <strong>Department of Regulation<\/strong> will provide secretarial assistance to the committee, ensuring smooth operations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Historical Context<\/strong><\/h2>\n\n\n\n<p>This is not the first time the RBI has established such a committee. The earlier SEAC, formed in March 2021, was chaired by Shyamala Gopinath, another former Deputy Governor of the RBI. That committee also served a three-year term and was instrumental in shaping the regulatory landscape for Universal Banks and Small Finance Banks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Exemptions for SFBs<\/strong><\/h2>\n\n\n\n<p>It is important to note that the new committee will not review applications from Small Finance Banks transitioning to Universal Bank licenses. Their &#8220;fit and proper&#8221; credentials were already assessed during the initial licensing phase.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Pending Applications<\/strong><\/h2>\n\n\n\n<p>Currently, several applications are under review by the RBI. Notable among these are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Annapurna Finance<\/strong> and <strong>AU Small Finance Bank (AU SFB)<\/strong>: Applications for Universal Bank licenses.<\/li>\n\n\n\n<li><strong>Fino Payments Bank<\/strong> and <strong>VFS Capital<\/strong>: Applications for Small Finance Bank licenses.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>General Overview: Universal Banks and SFBs<\/strong><\/h2>\n\n\n\n<p><strong>Universal Banks<\/strong> offer a comprehensive range of financial services, including deposits, lending, investments, and more. On the other hand, <strong>Small Finance Banks (SFBs)<\/strong> are specialized institutions aimed at promoting financial inclusion by providing banking services to underserved sections of society, including small businesses, farmers, and micro-entrepreneurs.<\/p>\n\n\n\n<p>The establishment of this committee underscores the RBI\u2019s commitment to strengthening India\u2019s banking ecosystem and ensuring a fair, transparent, and efficient licensing process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Kreditbazar: Your Trusted Partner for Personal Loans<\/strong><\/h2>\n\n\n\n<p>Kreditbazar offers seamless access to <strong><a href=\"https:\/\/kreditbazar.com\/\">pre-approved personal loans<\/a> for individuals and small businesses seeking financial support<\/strong>. Whether you need funds for personal needs or business expansion, Kreditbazar simplifies the process with its trusted lending partners and NBFCs.<\/p>\n\n\n\n<p>Visit <strong>Kreditbazar<\/strong> today to explore your options and take a step closer to achieving your financial goals!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Source<\/strong><\/h2>\n\n\n\n<p>Information is based on recent announcements by the Reserve Bank of India (RBI).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Reserve Bank of India (RBI) has announced the formation of a new Standing External Advisory Committee (SEAC) to assess applications for licenses for Universal Banks and Small Finance Banks (SFBs). The committee, which comprises five distinguished members from the banking and financial sectors, is chaired by M.K. Jain, the former deputy governor of the<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","tags":[],"news-category":[],"class_list":["post-3765","news","type-news","status-publish","hentry"],"a3_pvc":{"activated":true,"total_views":28,"today_views":0},"_links":{"self":[{"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/news\/3765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/types\/news"}],"author":[{"embeddable":true,"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/comments?post=3765"}],"version-history":[{"count":1,"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/news\/3765\/revisions"}],"predecessor-version":[{"id":3766,"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/news\/3765\/revisions\/3766"}],"wp:attachment":[{"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/media?parent=3765"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/tags?post=3765"},{"taxonomy":"news-category","embeddable":true,"href":"https:\/\/kreditbazar.com\/blog\/wp-json\/wp\/v2\/news-category?post=3765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}