rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Reserve Bank gets EC approval to grant new bank licences

Reserve Bank gets EC approval to grant new bank licences

Last updated on: April 01, 2014 19:15 IST

Reserve Bank gets EC approval to grant new bank licences

     Next

Next

Ending weeks of uncertainty, the Election Commission on Tuesday allowed the Reserve Bank to issue licences for setting up new banks.

"The Commission is of the view that the Reserve Bank of India may take necessary action (for grant of in-principle approval for banking licences) as deemed appropriate," the poll watchdog wrote to RBI Governor Raghuram Rajan on Tuesday.

The approval came after the RBI missed the March-end deadline for issuing the first bank licence in almost a decade.

The RBI on March 12 approached the Election Commission seeking its approval for granting bank lincences as the model code of conduct had come in place after the general elections announcement on March 5.

Click NEXT to read further. . .


Image: The RBI on March 12 approached the Election Commission seeking its approval for granting bank lincences as the model code of conduct had come in place after the general elections announcement on March 5.
Photographs: Reuters

     Next

Reserve Bank gets EC approval to grant new bank licences

Prev     Next
Prev

Next

The RBI had received 27 applications initially.

Later, Tata Sons and Value Industries withdrew, leaving 25 contenders in the race.

Public sector India Post and IFCI and private sector Anil Ambani group and Aditya Birla group were among the 25 players in the fray.

Bajaj Finance, Muthoot Finance, Religare Enterprises and Shriram Capital have also applied.

Earlier in the day, the RBI Governor while unveiling bi-monthly monetary policy said that once the central bank gets the EC approval it would expedite the process and grant licences.

Click NEXT to read further. . .


Image: The RBI had received 27 applications initially.
Photographs: Reuters

Prev     Next

Reserve Bank gets EC approval to grant new bank licences

Prev     Next
Prev

Next

"Once they (EC) say there is no issue there, they (RBI) would be in a position to announce the bank licences very quickly after taking it to the committee of the central board," Rajan said.

In the past 20 years, the RBI has licensed 12 banks in the private sector in two phases.

Ten banks were licensed on the basis of guidelines issued in January 1993.

Kotak Mahindra Bank and Yes Bank were the last two entities to get banking licences from the RBI in 2003-04.

 


Image: Reserve Bank of India Governor Raghuram Rajan (R) gestures as he responds to a question as Chairman of the Council Economic Advisers Jason Furman listens during a CNN Debate on the Global Economy, as part of the IMF and World Bank's 2013 Annual Fall Meetings, in Washington October 10, 2013.
Photographs: Mike Theiler/Reuters

Prev     Next

Top PHOTO features of the week

Prev     More



Tags: 1

Prev     More
© Copyright 2014 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.