RBI says final norms for on tap bank licences will be out this fiscal

Final guidelines for on tap universal banking licences will be issued in the current fiscal, Reserve Bank Deputy Governor R Gandhi said.

hidden September 16, 2014 16:04:18 IST
RBI says final norms for on tap bank licences will be out this fiscal

Mumbai: Final guidelines for on tap universal banking licences will be issued in the current fiscal, Reserve Bank Deputy Governor R Gandhi said here today.

"We are working towards issuing guidelines for full service banks on tap. I cannot give you a timeline, but it will be in this financial year," Gandhi told reporters on the sidelines of an annual banking event organised by FICCI and the Indian Banks' Association (IBA) here.

The Reserve Bank had earlier issued draft guidelines for payment and small banks and is in the process of finalising the final norms.

"Now the public comments (on small and payment banks) have been received and we are factoring in them. Soon we will come out with the final guidelines on these two," Gandhi said.

On corporate governance reforms in the public sector banks, he said the central bank has already recommended certain suggestions to the government.

"Based on various committees, including the PJ Nayak Committee recommendations, we have made certain suggestions to the government such as segregation of chairman and managing director posts and a separate committee for appointment of directors on board of PSU banks, and they are taking up the final decision," Gandhi said.

Replying to a query on lowering government's holding in public sector banks below 50 per cent as recommended by PJ Nayak committee report, Gandhi said the government has to take a view on how much they want to invest in these banks.

On the liquidity coverage ratio norms which RBI announced in June this year, he said the banks as of now are in compliance with the norms and will be able to achieve the target.

"Banks are compliant as of now on LCR norms till 60 per cent as they hold excess government securities. They are comfortable in reaching the target," he said.

The RBI had said the LCR will be introduced in a phased manner, starting with a minimum requirement of 60 per cent from 1 January, 2015 and reaching minimum 100 per cent on 1 January, 2019.

PTI

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