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Banking licence draft guidelines in next 15-20 days: FinMin

Banking licence draft guidelines in next 15-20 days: FinMin
PTI
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First Published: Thu, Apr 07 2011. 01 34 PM IST
Updated: Thu, Apr 07 2011. 01 34 PM IST
New Delhi: The Reserve Bank of India (RBI) will bring out a second draft of the proposed guidelines for issuance of new banking licences in the next 15 to 20 days, the finance ministry said on Thursday.
“Second draft guidelines for new bank licences in next 15 to 20 days,” Financial Services secretary Shashikant Sharma told reporters here.
The finance ministry will have a look at the draft guidelines and comments will be invited before the final guidelines are notified.
In the Budget 2011-12, finance minister Pranab Mukherjee had said the RBI plans to issue guidelines for the grant of new banking licences before the close of the last financial year, by 31 March, 2011.
In the last Budget, it was announced that the Reserve Bank of India would consider giving traditional banking licences to private sector players, he had said.
Following the announcement made by the finance minister, the RBI had brought out a discussion paper in August, 2010, on giving out new banking licences to business houses and non-banking finance companies, besides regulations for the same to foster greater competition.
The RBI also sought to know “whether industrial and business houses could be allowed to promote banks.” Furthermore, it sought stakeholders’ views on whether NBFCs should be allowed to convert into or promote banks.
The RBI has received comments on its discussion paper from all stakeholders. Various entities like Reliance Capital, IndiaBulls, Religare, IL&FS, IDFC, IFCI and Aditya Birla Financial Services are reported to be mulling an entry into the banking space.
At present, India has 26 public sector banks, seven new private sector banks, 15 old private sector banks, 31 foreign banks, 86 regional rural banks, four local area banks, 1,721 urban cooperative banks, 31 state cooperative banks and 371 district central cooperative banks.
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First Published: Thu, Apr 07 2011. 01 34 PM IST