1. RBI gets one application for on-tap licensing of private universal banks

RBI gets one application for on-tap licensing of private universal banks

The Reserve Bank of India (RBI) on Friday said that it has received just one application for 'on tap' licensing of universal banks in the private sector — from UAE Exchange and Financial Services.

By: | Mumbai | Published: July 1, 2017 6:13 AM
In August last year, the RBI had released guidelines for on tap licensing of universal banks in the private sector and allowed large industrial houses to invest up to 10% in them.

The Reserve Bank of India (RBI) on Friday said that it has received just one application for ‘on tap’ licensing of universal banks in the private sector — from UAE Exchange and Financial Services. “In order to ensure transparency, the names of the applicants for bank licenses will be placed on the RBI website periodically,” the central bank said, adding that going forward, it will publish the names of the applicants on a quarterly basis. In August last year, the RBI had released guidelines for on tap licensing of universal banks in the private sector and allowed large industrial houses to invest up to 10% in them.

The limit of 10%, the Reserve Bank had said, would apply to individuals and all inter-connected companies belonging to the concerned large industrial houses on an aggregate basis. A group with assets of Rs 5,000 crore or more with the non-financial business of the group accounting for 40% or more in terms of total assets / in terms of gross income will be treated as a large industrial house, the RBI had said at that time. The RBI had allowed resident individuals and professionals with 10 years of experience in banking and finance at a senior level to promote universal banks.

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