No new bank licences for now: RBI Deputy Governor | india | Hindustan Times
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No new bank licences for now: RBI Deputy Governor

india Updated: Oct 30, 2009 19:49 IST

The Reserve Bank today said it is not giving any new banking licences "as of now".

"As of now, we are not giving any new bank licences. After Yes Bank, no approval has been given so far," Reserve Bank of India Deputy Governor Shyamala Gopinath told reporters on the sidelines of a symposium here.

The Deputy Governor was reacting to a query on the state government's proposal to set up financial institutions based on the principle of 'Islamic banking' to attract interest free deposits from non-resident Keralites.

This proposal had not come before her, she said.

Asked if the RBI would permit the Kerala government to increase borrowing limit, she said it is not under their purview. It is an issue between the Centre and state, she said.

The Centre has to allow this. The RBI is looking after total borrowing position considering the state's financial position, she said.

"We do not give advice on it. It is an issue between the Centre and the states," Gopinath added.

On the merger of various local banks in the state, she said it was really a decision of the banks concerned.

"You have not lost any banks. The accounts are still there. What is important is whether people are getting banking services. The customers should not be harassed. Remittance facilities are very important," she said.