Tag Archives: License

Guidelines on banking licenses to be out soon

The guidelines on new banking licenses may be made available in the next three months, said the RBI on Thursday.

Talking on the sidelines of a conference, Deputy Governor of RBI, K C Chakrabarty said that the new framework may take three months to prepare. All depends on the complexities and the kind of situations that develop. But, he said that the RBI is trying very hard to get the guidelines very soon.

This comes a month after the Finance Minister Pranab Mukerjee said in his budget speech that the RBI can now give banking license to private NBFCs. This is being done so that the number of banks is increased.

While on one hand, it would help in better distribution of money, on the other it would allow the interested private players to enter into the banking sector.

As part of this, even the biggest insurer, LIC could get the license. LIC is already operating in the mutual fund and housing loan segment.

But Chakrabarty informed that all depends on the companies meeting the criterion set by the apex bank.