Raghuram Rajan has appointed him as head of several committees soon after taking charge.
After a 25-year stint at ICICI Bank, Mor suddenly quit as he wanted to add more value in the bigger areas of health care and financial inclusion.
The committee's suggestion that existing commercial banks be allowed to hold payment banks as subsidiaries is also seen as unviable by RBI and the finance ministry.
RBI had received 72 applications for small finance bank licences.
Focus to be on unbanked areas; initial capital is set at Rs 100 crore; India Post can apply.
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A rule change may make Nachiket Mor, among others, eligible to replace Chakrabarty.
Amidst rising demand from banks that they be allowed to increase user fees and limit free ATMs, RBI Deputy Governor K C Chakrabarty said it is "ridiculous" for a bank to charge its own customers for these services.
The Reserve Bank on Friday set up a three-member committee under former Governor Bimal Jalan to scrutinise applications for new bank licences, which are expected to be awarded by January.
The Department of Post, Tech Mahindra, Videocon Group and stock exchange NSE have joined big corporates like Ambanis and Birlas to seek entry into banking business through newly created niche category of Payments and Small Finance Banks.
Twenty-six entities, including the Tatas, Aditya Birla Group, Anil Ambani-led Reliance Capital and Religare, apart from India Post, applied. Videocon Group, later on withdrew its application.
Discussion paper fixes Rs 1,000 cr as minimum capital for these specialised banks
RBI data show one-fifth of all the infrastructure loans are stressed and the share of such loans in overall stressed assets is nearly a third.
The Reserve Bank of India (RBI) on Thursday paved the way for niche banking by issuing draft guidelines for setting up payment banks and small banks.
India's forex reserves recently declined by $704 million to $354.517 billion.
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Reliance, Birla Group, Airtel eye small finance banks.
Rajan drew attention towards the Nachiket Mor committee on PSL and said that the RBI is trying to make the entire process more effective.
Of the 11 licence holders, only eight remain in the fray as concerns about profitability and rising competition are making them think twice before jumping in.
'Government of India has the right to give directions to RBI'.
Issuance of new bank licences proves that the apex bank wants the financial sector to flourish.
The report contains names of entities eligible for bank licences. It was not immediately known how many applicants have been shortlisted by the high-level advisory panel.
The Jalan panel has recommended to the RBI to keep shady entities out of banking licence race.
Other members of the high-level advisory committee are former RBI Deputy Governor Usha Thorat, former Securities and Exchange Board of India Chairman C B Bhave, and Nachiket M Mor, Director of the Central Board of Directors of RBI, Governor Raghuram Rajan said.
The goal of the Committee on Comprehensive Financial Services for Small Businesses and Low-Income Households, a panel chaired by Nachiket Mor that submitted its report to the Reserve Bank of India last week, is truly a BHAG.
Payments banks will mainly deal in remittance services and accept deposits of up to Rs 1 lakh.
Based on this screening, the committee may weed out applications that do not meet the eligibility yardstick or the 'fit and proper' criteria for securing a licence.
DFS writes to departments that haven't responded to RBI's request for information.
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