Functions for common banks and small finance banks can be initially screened by the central financial institution to make sure prima facie eligibility of the candidates. The standing exterior advisory committee evaluates the functions thereafter.
That is the second exterior committee for such a objective. The primary one, arrange in March 2021, was headed by former deputy governor Shyama Gopinath.
The brand new committee would consider functions by AU Small Finance Financial institution and microfinance firm VFS Capital, if these entities go the primary screening by the central financial institution. AU has submitted its software for common banking whereas VFS seeks a small finance financial institution license.
Different members of the brand new five-member committee are RBI central financial institution director Revathy Iyer, former RBI govt director Parvathy V. Sundaram, former State Financial institution of India managing director Hemant G Contractor, former ICICI Prudential Life Insurance coverage managing director NS Kannan.
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Iyer and Contractor have been additionally a part of the earlier committee.The central financial institution mentioned the brand new committee will stay for 3 years.The licensing window for each common banks in addition to small finance banks are made on-tap in 2019. Since then, solely two small finance banks — Shivalik and Unity — obtained banking licences from the regulator. Each obtained the license in 2021.