The Reserve Bank of India (RBI) has rejected six applications to set up universal banks and small finance banks (SFBs). The proposals that were shot down included Sachin Bansal’s Chaitanya India Fin Credit Pvt Ltd and the one of former Citibank executive Pankaj Vaish.

The banking regulator said it had received 11 applications to set up banks under the on-tap licensing of universal banks and SFBs. It said six of them were “not found’’ suitable for in-principle approval.

The universal bank applications that have been turned down include UAE Exchange and Financial Services Limited; The Repatriates Cooperative Finance and Development Bank Ltd, Chaitanya India Fin Credit Private Limited and Pankaj Vaish and others.

The application was not found suitable for small finance banks in the case of VSoft Technologies and Calicut City Service Co-operative Bank Ltd.

RBI added that the remaining applications are under examination. They are for setting up of SFBs: West End Housing Finance Ltd, Akhil Kumar Gupta, Dvara Kshetriya Gramin Financial Services Pvt Ltd, Cosmea Financial Holdings Pvt Ltd and Tally Solutions Pvt Ltd are in the fray.

For Bansal, the news came when he was addressing a press conference to announce the non-convertible debenture (NCD) issue of Navi Finserv Ltd (NFS), a wholly owned subsidiary of Navi Technologies Ltd (Navi).

Three-point strategy

The RBI on Tuesday said improving infrastructure, ensuring low and stable inflation and maintaining macroeconomic stability are critical to revive the animal spirits (among entrepreneurs) and spurring growth.

It made these observations in its May bulletin in an article on the state of the economy. According to the RBI, private investment should be encouraged through higher capital expenditure by the Government which “crowds in’’ private investment.

“The global growth outlook appears grim as geopolitical tensions linger, commodity prices remain elevated and withdrawal of monetary accommodation gathers speed.”