RBI fixes timelines for regulatory approvals

Written by PTI | Mumbai | Updated: Jun 24 2014, 02:36am hrs
RBI'If departments are likely to exceed the timeline, they will revert to the applicant' (Photo: AP)
Moving to a time-defined process, the RBI today fixed schedules for various regulatory approvals, including grant of private bank licence, and also released a citizens' charter for its various services like clearing of transactions.

The release of 'Timelines for Regulatory Approvals' and 'Citizens' Charter' for delivery of services on RBI's website is a part of implementation of non-legislative recommendations of the Financial Sector Legislative Reforms Commission (FSLRC), the central bank said in a notification.

"These timelines are indicative. If departments are likely to exceed the timeline, they will revert to the applicant," it said.

In case an applicant does not get a response within the indicated timeline, they can approach the head of the department who will respond with status of the application, the reason for delay, request for additional information and likely time for disposal of the application, it added.

As per the citizens' charter for RBI's departments which have public interface, deposit accounts department should issue cheque book within 20 minutes and demand draft should be issued in an hour, among others.

Besides, refinance facility and disbursement of loans should take place in the same day of application while clearing should be completed by 3 days.

With regards to timeline for regulatory approvals, the RBI said, an applicant for private bank licence should be given in-principle approval within 90 days after receipt of report from the independent external advisory committee.

Similarly timelines have been fixed for in principle approval to banks for IPO, preferential issues of capital and qualified institutional placements (30 days) and authorisation for import of gold and silver by banks (60 days).

As per one recommendation of the FSLRC, all regulators are required to move to a time-defined approval process, subject to applicable laws, for all permissions including licence to do business, as well as launch of products and services.