RBI to invite applications for bank licences, says Sandhu

The Reserve Bank of India (RBI) will soon invite applications for issuance of licences in three categories - small banks, payment banks and universal banks - to achieve financial inclusion target, Financial Services Secretary G S Sandhu said on Wednesday.

"Reserve Bank will shortly invite fresh applications to grant licence in three categories such as small banks, payment bank and universal bank to fulfil objectives of the government," he said at a PHD Chamber of Commerce and Industry (PHDCCI) meet here.

Sandhu said preparations were afoot to invite fresh applications for opening up of banks in the identified categories. The first priority of the government, he added, would be for smaller banks.

The finance ministry is finalising a cabinet note for financial restructuring of the banking and financial sector as also to broad-base the debt market to enable corporates access liquidity on long term basis exceeding 25 years so that the burden of interests on them is eased out, he said.

The ministry will "very shortly" approach the Cabinet with a roadmap for capital infusion plan in public sector banks so that they meet global capital adequacy norms, he added.