RBI says new banking licenses will take more time

Mumbai: Ruling out relaxation in norms forgrant of new bank licences, the Reserve Bank today said thoughit has started the scrutiny of applications, the exercise willtake some time.

“We have started the scrutiny of applications. It isquite an extensive work because now we are looking atcorporate groups. The workload is quite heavy in that sense,”

Deputy Governor Anand Sinha, in-charge of banking supervision,told reporters here on the sidelines of a Ficci event.

Sinha also said the RBI will be setting up an externalscrutiny panel after the internal scrutiny is over.

[caption id=“attachment_1011915” align=“alignleft” width=“380”]  Will the approval come soon? Reuters[/caption]

“Banking licence applicants have been given a transitionperiod. We expect all applicants to comply with all thatrequirements,” Sinha said, ruling out any relaxation of normsthat require, among other things, Rs 500 crore networth and aholding company (of the proposed bank) which is unlisted andnon-operative in a financial sense (NOHFC).

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The Central bank has received 26 applications includingthose from Tata Capital, Reliance Capital, the Birlas, L&FFinance, Bajaj group and India Post.

Considering that Governor D Subbarao has only 30 daysbefore he retires, it is almost certain that he will not takeany call on the new bank licence front.

PTI