India rejects 2 applicants for a small finance bank licence

Two other applications remain under examination.

India’s central bank has rejected 2 applications applying for a license to become a small finance bank.

Dvara Kshetriya Gramin Financial Services Private Limited and Tally Solutions Private Limited were not found suitable to be granted in-principle approval to set up a small finance bank, the Reserve Bank of India (RBI) said in a statement posted on its website.

Two applications remain under examination.

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The RBI has received a total of 13 applications under the guidelines for ‘on-tap’ licensing of universal banks and small finance banks. The decisions on nine of these applications were announced in 2022 and 2023.