Reserve Bank of India board members discussed new bank licensing norms in the board meeting, though no time frame was fixed for their implementation, Governor D Subbarao said on Friday.
?The RBI board discussed the new banking licensing based on organised consultation with the people on a discussion paper we had circulated earlier,? Subbarao said after the board meeting.
Granting the licences would ?take some time,? an official said. Last month, financial services secretary R Gopalan said granting banking licences to new entities could still be a ?long way off?.
Industry lobby groups recently urged RBI to grant bank licences to corporate entities with financing subsidiaries. Finance companies, owned by Anil Ambani, AV Birla, Shriram group apart from IFCI, Sidbi, Power Finance Corp and Rural Electrification Corp are keen to enter the banking space.
In February, finance minister Pranab Mukherjee announced plans to issue additional banking licences in Union Budget 2010-11. Accordingly, RBI put out a discussion paper in August seeking opinion on new private bank licences by September 30. Comprehensive guidelines on the licences would be framed and applications would be invited after discussions based on feedback, the RBI said. RBI suggested three alternatives for minimum capital requirements for new banks and promoters? contribution in the discussion paper.
