The Reserve Bank of India (RBI) has announced the establishment of a Standing External Advisory Committee (SEAC) to evaluate applications for Universal Banks and Small Finance Banks (SFBs). The tenure of the SEAC has been set for three years, and the Department of Regulation, RBI, will provide secretarial support to the committee.
The SEAC will be chaired by MK Jain, former Deputy Governor of the RBI, and will comprise five distinguished members Revathy Iyer, Director, Central Board, RBI; Parvathy V Sundaram, former Executive Director, RBI; Hemant G Contractor, former MD, State Bank of India and former Chairman, Pension Fund Regulatory and Development Authority (PFRDA) and NS Kannan, former MD & CEO, ICICI Prudential Life Insurance Co Ltd.
According to the RBI’s licensing guidelines, applications for Universal Banks and SFBs will initially undergo a screening process by the RBI to verify the prima facie eligibility of applicants. Subsequently, the SEAC will review and evaluate the applications, leveraging the expertise of its eminent members from the banking, financial, and regulatory sectors.
This initiative aligns with the RBI’s objective to ensure a robust evaluation process for licensing banks in India. It also reflects continuity from the earlier SEAC announced on March 22, 2021.
