RBI sets up external advisory committee for evaluating banking applications


The Reserve Bank of India (RBI) on Monday set up a standing external advisory committee, which will evaluate applications for universal and (SFBs). The committee has five members, with former deputy governor Shyamala Gopinath as the chairperson.


Other members include Revathy Iyer, director, central board, RBI; B Mahapatra, former executive director, National Payments Corporation of India; T N Manoharan, former chairman, Canara Bank; and Hemant G Contractor, former MD, State Bank of India, and former Chairman, Pension Fund Regulatory and Development Authority.



The panel will have a tenure of three years. “The secretarial support to the committee would be provided by RBI’s Department of Regulation,” the central bank said.


According to guidelines, applications for universal and SFBs will first be evaluated by the to ensure prima facie eligibility of the applicants, after which the newly formed committee will evaluate the applications.


In the guidelines for “on-tap” licensing of universal banks in the private sector, 2016, and for “on-tap” licensing of SFBs, 2019, the had indicated that a standing external advisory committee (SEAC) would be constituted, which would be involved in the process of evaluating the application in these spaces.


It also mentioned that the SEAC will set up its own procedures to screen the applications. The panel will meet periodically, as and when required.


Furthermore, the committee can ask for more information as well as have discussions with any applicant and seek clarification on any issue. It will then submit its recommendations to the RBI for consideration.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Free Course

"Double Your Traffic in 30 days" + Secret Bonus

valued at $299

This amazing course will teach you, step by step, how to double if not triple your traffic over the next 30 days.

100% Privacy. We will never spam you!