Bank aspirants seek clarity on licence guidelines
“There are concerns over the provision seeking to reduce the minimum shareholding by the NOFHC (non-operative financial holding company) to 15 per cent,” said an executive with a corporate house that plans to apply for a licence, on conditions of anonymity.
According to the RBI guidelines, the NOFHC will initially hold a minimum of 40 per cent of the paid-up voting equity capital of the bank. After a five-year lock-in period, it will have to pare down its stake to 15 per cent in 12 years.
The norms have also made it a prerequisite for new banks to open 25 per cent of the branches in rural areas. “It is a widely accepted practice. But we want to clarify whether the rural branches would have to be operational from Day one when the bank starts or can be opened gradually,” said an official with another company that is planning to apply for a bank licence.
Another contentious issue is the structure of the NOFHC. Many of the bank licence aspirants have raised questions on the exact way it has to be set up
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