R Gopalan, secretary, financial services said RBI will ensure a level playing field for existing banks, while allowing new players in the banking sector who have to operate on a pan-India basis.
?There must be a level playing field for the existing banks also. It (entry of new entities) should not be a disadvantage to them. The guidelines will be framed in a way that it will not be disadvantageous to the existing players,? The government decided to allow more players in the banking space to promote healthy competition in the industry and push financial inclusion, he said.
?There are any number of unbanked and under-banked?villages. The potential for banking in the country is huge. The government wants additional banking footprint and has requested the RBI to consider new players. The apex bank thinks there is a need for it,? Gopalan said.
On the pending bills pertaining to insurance and pension Gopalan said government was yet to decide whether these bills could be taken up by the Parliament.
On capital infusion to the banks, Gopalan said the government was fully committed to fund all the public sector banks (PSBs) so that they could maintain 8% capital. The government had plans to bring down its stake below 51% and would fund adequately so that banks can expand their business.
?SBI is yet to come to the government for any kind of capital infusion,?? he said.
