New bank licences likely by March 31: Takru

RBI had yesterday extended the validity of in-principle approval for new banks to 18 months from one year

India is likely to give new bank licences by March 31, 2014, Rajiv Takru, secretary of financial services, told a local news channel on Tuesday.

On Monday, the Reserve Bank of India said it had extended the validity of in-principle approval for new banks to 18 months from one year.

The central bank, had however, declined any relaxation on meeting priority-sector obligations.

“RBI was requested to clarify if it would provide more time for a smooth transition from the existing structures to that prescribed in the guidelines, as also to meet regulatory requirements. It has, therefore, been decided to extend the validity period of the in-principle approval from one year to 18 months,” the central bank had said.

In the clarification on draft norms issued on Monday, the banking regulator made it clear that track record of all group companies, including non-financial ones, would be considered while vetting the applications.