RBI rejects Annapurna Finance's application to set up universal bank

RBI cites non-suitability under current guidelines as reason for turning down Bhubaneswar-based NBFC-MFI's bid for universal bank licence.

Don't want to miss the best from Business Standard?

The Reserve Bank on Friday rejected the application by Bhubaneswar-based Annapurna Finance to set up a universal bank. The company had applied for a universal banking licence in January 2023.

 

“The Reserve Bank has completed the examination of the application of Annapurna Finance Private Limited for setting up a universal bank. Based on the assessment of the application as per the procedure laid down under extant guidelines, the applicant was not found suitable for granting of in-principle approval to set up a universal bank,” the central bank said in a statement.

 

Established in 2009, Annapurna Finance is among the top 10 NBFC-MFIs in the country. It provides microcredit for mostly income-generating activities to women using the group lending model. It also offers other products such as individual loans to provide financial assistance to the micro, small and medium enterprise (MSME) segment, home and home improvement loans, consumer durable loans, and others.