Twitter

Facebook

Youtube

Pintrest

RSS

Hindi News | Samay | UP/Uttarakhand | MP/Chhattisgarh | Bihar/Jharkhand | Rajasthan | Aalami Samay
RBI issues guidelines for new bank licences
Last Updated : 22 Feb 2013 07:43:42 PM IST
Reserve Bank of India
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):
Post your comment Post Your Comments
Your name :
Your e-mail address :
Your website :
Add your comments :
Please enter the code you see in the image:
Security Code :

Unexplained phenomena such as animals giving birth to creatures slightly resembling humans

What a couple gives as a gift to each other. What you guess is a rose, a diamond ring, a b

Always being under the gaze of the camera makes celeb mishaps all the more visible. Here i

Murder during sex-- its just unbelievable. But this is what happened in America when a tee

The world’s first bra which can only be unhooked with true love. Yes, you read it right.

This teenaged girl can't have sex or babies due to rare condition that left her without re

Arvind Kejriwal is the one politician who has the ability to take a joke. Kejriwal jokes i

Here is what to expect from the boldest ever episode of Koffee with Karan featuring Bollyw

There has been speculation in the past over a cold war between Shahrukh and Amitabh but th

We bring you some rare pix of Bollywood which, for sure, you must not have seen. Click and

Ameesha Patel got groped by an individual in a mob that consisted of her fans while she we

The new craze sweeping around the globe is naked yoga in the latest of fitness trends this

Taiwanese technology firm Asus has launched dual SIM tablet Fonepad 7 in India.


Samay Live

Samay Live

 

Samay Live
Samay Live
Samay Live
Samay Live
Samay Live
Samay Live
Samay Live
Samay Live

10.10.70.24