The Reserve Bank of India (RBI) moved on Tuesday to set clear conditions for more players in the banking sector with the announcement that a draft containing guidelines to grant new banking licences will be ready by January.
The central bank had put up a discussion paper on the matter in August.
A host of corporate giants such as Reliance Capital, the Aditya Birla Group and the Tatas are among those showing a keen interest in entering the banking sector. Besides, non-banking finance companies including Shriram Finance, LIC Housing and Mahindra Finance are also keen to start banks. No taking chances
"Based on the comments and suggestions received from various parties and discussions held with major stakeholders in October 2010, it is proposed to put the draft guidelines in the public domain by end of January 2011," the central bank said in its second quarter policy review.
The RBI has also held meetings with representatives of Indian companies to get its view on allowing new players in the banking segment.
RBI also believes that the ceiling on foreign direct investment in banks should be brought below 50% from the current 74%.
{{/usCountry}}RBI also believes that the ceiling on foreign direct investment in banks should be brought below 50% from the current 74%.
{{/usCountry}}It would also come out with a discussion paper on the mode of presence of foreign banks. “A discussion paper is in final stages of preparation,” it said.