Mr. Sachin Bansal, the founder and chairman of start-up Navi, recently approached the Reserve Bank of India in hopes to make his fintech application an entity of the apex financial institution of the country. The RBI ended up rejecting his proposal by saying that the application is not best suited for it to have a universal banking licence.
The company recently started their own non-convertible debentures and as Mr. Bansal was addressing the inauguration of them, he got the news that his dream of working with the Reserve Bank of India has not been realised yet. He has however carried a free-spirited approach to the news and said that they will give it another crack before approaching the institution again. In the meantime, they will also be appealing the decision hoping that another consideration will reverse their original decision.
Navi Group is a financial services company founded by Mr. Sachin Bansal four years ago back in 2018. The company was founded in Bangalore and they offer services such as personal loans, home loans and even mutual funds.
Mr. Bansal said that they still have not received any tangible decision or letter from the RBI. They will be studying the evaluation and reasons for RBI’s reasons for rejection and then figure how to get by and receive the approval in the future. He said in a cheerful manner that it is not the end of their journey and that there are many avenues to take which includes requesting the RBI to revaluate or even apply again after improving their pitch and taking into consideration everything the panel of RBI agents say.
He said that they will not act with any haste and explore what exactly to do. They will be weighing all options laid out to them and they will take their time to choose wisely and move on.
He also went to say that they weren’t the only ones rejected by the RBI as three other companies also applied to work with the entity and they were all rejected as well.
There are multiple litigations currently in the process against Mr. Bansal which was one of the main reasons for the RBI’s rejection. They want to work with companies and people with a clean slate and Mr. Bansal just missed the mark on that.
Mr. Sachin Bansal has made it clear that he wants his company to work closely with the RBI as soon as possible but at the same time they do not want to be hasty with their work or decisions and they will be taking their time making the right choices.
