The Reserve Bank of India (RBI) has announced the formation of the Standing External Advisory Committee (SEAC) to evaluate applications for Universal Banks and Small Finance Banks. The committee will have a tenure of three years.
Composition of SEAC
The SEAC comprises eminent professionals with extensive experience in banking and the financial sector:
- Shri M. K. Jain
- Former Deputy Governor, Reserve Bank of India
- Role: Chairperson
- Ms. Revathy Iyer
- Director, Central Board, Reserve Bank of India
- Role: Member
- Smt. Parvathy V. Sundaram
- Former Executive Director, Reserve Bank of India
- Role: Member
- Shri Hemant G. Contractor
- Former MD, State Bank of India and Former Chairman, PFRDA
- Role: Member
- Shri N. S. Kannan
- Former MD & CEO, ICICI Prudential Life Insurance Co. Ltd.
- Role: Member
The Department of Regulation, RBI, will provide secretarial support to the committee.
Committee’s Role
The SEAC is tasked with evaluating applications from eligible entities after an initial screening by the RBI. This ensures that applicants meet the prima facie eligibility criteria outlined in licensing guidelines for Universal Banks and Small Finance Banks.
Background
The establishment of SEAC aligns with RBI’s commitment to a transparent and robust evaluation process for granting banking licenses. The first SEAC, constituted in 2021, had a similar mandate.
The formation of this committee underscores the RBI’s efforts to bring experienced and credible oversight to the evaluation process, ensuring the inclusion of capable entities in the banking sector.
