The RBI should give preference to the non-corporate sector for new bank licences, the Prime Minister's Economic Advisory Council chairman C Rangarajan said.

As per the draft guidelines on new bank licences, business houses with successful track record and a minimum capital of Rs.500 crore will be allowed to set up commercial banks. Currently, minimum capital requirement is Rs.300 crore.

"Entities or groups with significant (10% or more) income or assets or both from real estate, construction and broking activities individually or taken together in the last three years will not be eligible to set up new banks," the draft said.

It said aggregate non-resident shareholding in the new bank should not exceed 49% for first five years against current norms of foreign holding in private banks being allowed up to 74% of paid-up capital.