After RBI nod, scramble for banking licences begins

These companies may also convert into a bank and divest the activities which banks are not allowed to undertake departmentally. In such a case, the bank shall have a minimum net worth of R500 crore. Moreover, with the central bank’s clause to open 25% of bank branches in unbanked rural centres, which have a population up to 9,999 as per the latest census, NBFCs with a mighty rural presence like Mahindra & Mahindra Finance are keen to apply for a banking licence.

Sam Ghosh, chief executive officer, Reliance Capital, said the guidelines are “forward looking and Reliance Capital will be interested in applying for a banking licence”.

“We are most eminently eligible for a bank. That too, not just going by what the guidelines say, but also going by our successful track record of more than 10 years as a leading financial services conglomerate,” said Ajit Mittal, group executive director, Indiabulls Group.