VFS Capital Withdraws Bank Licence Application

Mumbai, Oct 27 (PTI) The Reserve Bank on Monday said VFS Capital Ltd, the Kolkata-based microfinance institution, has withdrawn its application submitted under guidelines for 'on tap' licensing of small finance banks.

"The Reserve Bank had announced the receipt of an application from VFS Capital Ltd under the Guidelines for ‘on tap' Licensing of Small Finance Banks in the press release on January 01, 2025. It is now communicated that VFS Capital Ltd has withdrawn its application," the central bank said in a statement.


VFS Capital was one of the 72 applicants which had applied for a small finance bank license a decade back, when the regulator first mooted the idea of differentiated banks.

The microfinance company started working with the bottom of the pyramid borrowers in 1996-97 and was one of the earlier ones to get an NBFC license. It got registered with the RBI as NBFC-MFI in September 2013.

The regulator made the application process 'on-tap' in 2019.