New Committee To Screen New Bank Licences

The Standing External Advisory Committee (SEAC) will be composed of prominent individuals with experience in the banking, financial sector and other related fields.

New Committee To Screen New Bank Licences

24 March 2021 Current Affairs:The Reserve Bank of India (RBI) established a five-member Standing External Advisory Committee (SEAC), led by former Reserve Bank of India Deputy Governor Shyamala Gopinath, to evaluate applications from Universal Bank and Small Finance Bank (SFB). The Standing External Advisory Committee (SEAC) will be composed of prominent individuals with experience in the banking, financial sector and other related fields.
About the Committee:
♦ Term: The committee will serve for three years.
♦ Committee Secretariat: The committee’s secretary support will be provided by the Regulatory Department of the Reserve Bank of India.
♦ Function: Applications from Universal Bank and SFB will first be evaluated by the Reserve Bank of India (RBI) to ensure that the applicant has the ostensible qualifications, and then SEAC will evaluate the application.
♦ Small Financial Bank (SFB):Small financial banks are financial institutions that provide financial services to unserviced and unbanked areas of the country. Registered as a public limited company under the 2013 Companies Act.
 

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