- Bar Refaeli feels she is too sexyAbhishek Bachchan clash with Bunty WaliaShahrukh completes 23 years in B'woodCheck out adorable pics of Isha Koppikar's little angelSalman wept while watching \'Bajrangi Bhaijaan\'?Other than Ranveer, who wants to marry Deepika Padukone?Sunny Leone shares screen space with Akki!Kareena\'s London talesParineeti moves in her Bandra HouseShahid's Mira may show her first 'jhalak' on JDJ 8
It will be a very different kind of first serve at this year's Wimbledon tennis championsh
RBI issues guidelines for new bank licences Last Updated : 22 Feb 2013 07:43:42 PM IST File Photo
The Reserve Bank of India on Friday issued the much-awaited guidelines for new bank licences, allowing corporates and public sector entities with sound credentials and a minimum track record of 10 years to enter the banking business.
The Reserve Bank, which has laid down an elaborate 'fit and proper' criteria, has not excluded any category like brokerages, real estate companies from entering into the banking space as has been advocated by the Finance Ministry.
The final guidelines pave the way for corporate houses like Anil Dhirubhai Ambani Group, Larsen & Toubro, Tatas, Mahindra and Mahindra, Life Insurance Corporation and Aditya Birla Group to enter the banking business.
"Entities/groups should have a past record of sound credentials and integrity, be financially sound with a successful track record of 10 years," it said.
The minimum paid-up capital for setting up a bank has been pegged at Rs 500 crore.The cap on the foreign investment, including FDI/FII and NRI, has been set at 49 per cent.
As per norms notified by RBI, on receipt of licence, promoter has to start operations within one year and list the company within three years of commencement of the business.
Also, new banks should open at least 25 per cent of branches in unbanked rural centres.
Those seeking to set up a bank would have to submit applications by July 1, 2013. The RBI will display names of applicants on its Website.
Before granting licences, RBI would seek feedback about applicants from other regulators, enforcement, investigative agencies like I-T Department, CBI, ED, as deemed appropriate.
The rules issued today is the culmination of three-year process. RBI will now begins taking applications for bank licenses for the first time in a decade.
At present, there are 26 public sector banks and 22 private sector banks. Only 35 per cent of India's adult population has accounts with banks and other financial institutions as compared to a global average of 50 per cent. It is 41 per cent in case of developing economies.
Following are the highlights of the Reserve Bank's guidelines for licensing of new banks in the private sector:
* Corporates, PSUs and NBFCs can set up a bank
* No bar on entities in sectors like brokerage, realty
* Minimum paid-up equity capital to be Rs 500 crore
* New banks to get listed within 3 years of business
* Foreign shareholding limited to 49% for first 5 years
* RBI to seek feedback on applicants' background from other regulators, Income Tax, CBI and ED
* Licence seeker should have 10 years of successful financial track record, sound credentials and integrity
* To comply with priority sector lending targets; open at least 25 per cent branches in unbanked rural areas
* Boards to have majority of independent directors
* Business plan should be realistic, viable and address financial inclusion
* Applications will be screened by RBI and referred to a high level advisory committee
* To ensure transparency, names of applicants will be placed on RBI's website
* Last date for applying for the licence is July 1
* Over the last two decades, RBI licensed 12 banks in private sector
* New banks were proposed in Budget speech for 2010-11
* RBI floated first discussion paper in August 2010.
Post Your Comment (0 posted):
Bar Refaeli feels she is too sexy to be handle.
- Abhishek Bachchan clash with Bunty Walia
- Shahrukh completes 23 years in B'wood
- Check out adorable pics of Isha Koppikar's little angel
- Salman wept while watching 'Bajrangi Bhaijaan'?
- Other than Ranveer, who wants to marry Deepika Padukone?
- Sunny Leone shares screen space with Akki!
- ABCD 2 dancer arrested for raping minor girl
- Arjun turns brand ambassador of Hero Cycles
The state's Technical Education and Training Minister Ujjal Biswas said that the student s
Those days are gone, when you have to depend on touch screens and buttons to control your