Corporates meeting norms to get banking licence: FM
“The RBI has drawn up draft guidelines, guidelines say that more licences will be given to the private sector... the governor told me he will give out guidelines in two weeks,” Chidambaram told Reuters Television in an interview in London on Tuesday: “Whether any corporate or any kind of corporate will be excluded I cannot say.”
“But if the guidelines are made out and transparently spelt out and if a corporate satisfies those guidelines, I don’t see any reason why a corporate should not be given a licence.”
The central bank had issued a draft set of guidelines in August 2011 barring entities with 10 per cent or more income or assets from real estate, construction and broking activities from starting banks. RBI is understood to have sent the guidelines to Delhi for vetting by the finance ministry. Chidambaram said in the interview that checks would be put in place to prevent misuse. “There will be clear firewalls and red lines which cannot be crossed.”
The finance minister also said that the Budget next month will be a “responsible” one as general elections are 15 months away. Addressing global investors, on the fourth leg of his overseas roadshow that began last week, he said the government will implement many of the
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