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HindustanTimes Mon,20 May 2013
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Banking

New bank licence norms very soon: Reserve Bank
HT Correspondent, Hindustan Times
Mumbai, February 08, 2013
First Published: 21:54 IST(8/2/2013)
Last Updated: 21:56 IST(8/2/2013)
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Reserve Bank is likely to "very soon" come out with the final guidelines on new bank licences as its consultations with the finance ministry on the issue is nearing an end, deputy governor Anand Sinha said on Friday.

Sinha also said that the central bank and the finance ministry
will arrive at a common position on issues like allowing brokerage firms and realtors into the banking space.

"We will come to a mutual position (on issues concerning brokerages, real estate firms to be given banking licences) and then issue the final guidelines," Sinha told reporters on the sidelines of an event.

On the issue of the timeline for the final guidelines, Sinha, in-charge of the banking operations and development department at the RBI, said, "very soon" as "consultations with the ministry are nearing an end".

In the draft guidelines issued in August 2011, the central bank had said firms with an exposure of 10% or more to real estate and brokerage businesses by revenue or assets will not be eligible for applying for banking licences.

Sinha said there is a concern of self-dealing (between bank and its promoter group companies) on which the consultation is going on with the North Block.

"The basic issue is the possibility of self-dealing. Nevertheless, in the draft guidelines we have said we will go ahead," Sinha said.


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