Home >Industry >Banking >Tally,  Cosmea  eye RBI permit to set up small banks

MUMBAI : The Reserve Bank of India (RBI) on Monday said it has received applications from Cosmea Financial Holdings Pvt. Ltd and Tally Solutions Pvt. Ltd to set up small finance banks (SFBs).

The firms have applied under RBI’s on-tap licensing norms released in December 2019. According to data from the Registrar of Companies (RoC), Mumbai-based Cosmea Financial Holdings was incorporated on 24 November 2020 with a paid-up capital of 1.51 crore. It has two directors, Soumen Ghosh and Suresh Thiruvananthapuram Viswanathan.

Tally Solutions, a business management software solutions company, has a paid-up capital of 36 crore and was set up on 8 November 1991. Based in Bengaluru, its directors include Bharat Goenka, Sheela Goenka, Tejas Goenka, Nupur Goenka and Bhakti Manoj Modi.

In April, RBI said eight institutions and individuals applied for on-tap licences to set up universal banks and small finance banks. UAE Exchange and Financial Services Ltd, Repatriates Cooperative Finance and Development Bank Ltd, and Chaitanya India Fin Credit Pvt. Ltd—an entity owned by Flipkart co-founder Sachin Bansal—sought licences for universal banks. Non-bank UAE Exchange had earlier applied unsuccessfully for a banking licence in 2017.

VSoft Technologies Pvt. Ltd, Calicut City Service Co-operative Bank Ltd, Akhil Kumar Gupta and Dvara Kshetriya Gramin Financial Services Pvt. Ltd showed interest in setting up small finance banks, RBI said in April.

Earlier this year, RBI set up a panel led by former deputy governor Shyamala Gopinath to evaluate applications for universal and small finance banks, which are mandated to focus on priority sector lending and small loans. The last time RBI handed out universal bank licences was in 2014, giving them to IDFC Ltd and Bandhan Financial Services.

Under the on-tap regulations, the minimum paid-up voting equity capital or net worth requirement is 200 crore.

For primary urban co-operative banks willing to voluntarily transition into small finance banks, the initial net worth requirement is at 100 crore, which will have to be raised to 200 crore within five years from the date of commencing their business.

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