RBI sets up external advisory team to screen on tap bank licenses

RBI has recently announced the setting up of a Standing External Advisory Committee (SEAC) to evaluate applications for universal banks and small finance banks.

The SEAC which will have a tenure of three years, and will screen applications for universal and small finance banks after the regulator first vets the proposal. The five-member committee will be headed by former deputy governor Shyamala Gopinath.

RBI said, “The applications for Universal Banks and Small Finance Banks will be initially screened by the Reserve Bank to ensure prima facie eligibility of the applicants.”

It was also stated that a SEAC comprising eminent persons with experience in banking, financial sector and other relevant areas, will evaluate the applications thereafter and that the constitution of the SEAC will be announced by RBI.