RBI to issue clarifications on new bank licence norms

To address the concerns of intending applicants, the Reserve Bank said today it will issue clarifications on the final guidelines for new bank licences.

To address the concerns of intending applicants, the Reserve Bank said on Thursday it will issue clarifications on the final guidelines for new bank licences.

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The regulator said many entities and groups interested in joining the banking fray have been posting queries ever since the guidelines were made public on February 22.

"The Reserve Bank has been receiving queries from intending applicants seeking clarifications on the guidelines on licensing of new banks in the private sector," RBI said in a notification.

Assuring that the identity of those seeking clarifications will be protected, the regulator invited them to write in by April 10. However, RBI has not mentioned when it will come out with the clarifications.

"Considering that the clarifications sought would be of wider interest and use for all intending applicants, the Reserve Bank has decided to post the clarifications on its website," it said.

The RBI had posted the final guidelines after almost three years of the then finance minister Pranab Mukherjee making an announcement in the budget to allow new private banks. RBI last gave bank licences around a decade back.

The interested parties have been given time till July 1 to apply. Among other things, the guidelines have allowed any entity - be it private or government owned - having its roots in any sector, including brokerages and realty, to apply for a banking licence.

The RBI however, said it will go by 'fit and proper' criteria, which will include having a past record of sound credentials and integrity and financial soundness with a successful track record of 10 years, while giving licences.

Other requirements include an initial capital of Rs 500 crore to be brought in by the promoter.