The Reserve Bank of India (RBI) has rejected six applications for setting up banks, including for small finance banks, as these were "not found suitable," the central bank said on Tuesday. The RBI in a statement said the examination of six applications has now been completed as per the procedure laid down under the guidelines.

"Based on the assessment of the applications, (six) applicants were not found suitable for granting of in-principle approval to set up banks," it said. Applicants not found suitable under the guidelines for 'on tap' licensing of universal banks are: UAE Exchange and Financial Services Limited; The Repatriates Cooperative Finance and Development Bank Limited (REPCO Bank); Chaitanya India Fin Credit Private Limited, and Pankaj Vaish and others, it said.

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The RBI further said the applicants not found suitable under Guidelines for ‘on tap' licensing of small finance banks are: VSoft Technologies Private Limited and Calicut City Service Co-operative Bank Limited. The Reserve Bank had received 11 applications to set up bank under the Guidelines for ‘on tap' Licensing of Universal Banks and Small Finance Banks.

The remaining applications are under examination, the central bank added. The remaining five applications are for setting up of small finance banks. West End Housing Finance Limited, Akhil Kumar Gupta, Dvara Kshetriya Gramin Financial Services Private Limited, Cosmea Financial Holdings Private Limited, and Tally Solutions Private Limited are among the applicants.

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First Published:May 17, 2022 6:11 PM IST