The public sector banks will together own 51% stake in the proposed corporation for the clearing operations of the Reserve Bank of India (RBI). V Leeladhar, RBI deputy governor, said details would be worked out after the Bill gets the assent of the President.
The Bill (Payment & Settlement Bill) has been passed by both the Lok Sabha and the Rajya Sabha.
“What we are envisaging is that there should be a system where all clearing procedures are standard, so that they are operated in a seamless way,” Leeladhar said.
Most countries have a clearing corporation, promoted by a banking association. The ownership is so widely spread that no single bank is able to control the operations, he said.
RBI is handling clearing operations in four metros, along with eight more centres where the regulator has branches. The proposed corporation will take over the entire business from banks.
“An amendment has been passed saying that at least 51% of the share of the corporation will be owned by the public sector banks. The rest can be owned by other banks.”
On the question of whether foreign banks will be allowed to have a share in the corporation, he said, “all those things we are yet to get into.”
Leeladhar was present at the roll out of core banking solutions in 201 branches of the United Bank of India (UBI).
UBI plans to roll out 350 CBS-enabled branches by March 2008 covering 66% of the bank’s business. The bank has added 58 new branches during the period to push the number up to the present 1,368.
PK Gupta, UBI chairman-cum-managing director, said the total business of the bank moved up from Rs 37,000 crore to Rs 62,000 crore in the last two and a half decades, registering a growth of 67% in total business.
Deposits during the period went up by 50% to Rs 38,800 crore and advances by 97% to Rs 23,200 crore.