RBI to study global cues for bank licences

The Reserve bank of India (RBI) would work with all stakeholders and study global experience in formulating guidelines for new banking licences, especially for private companies, Deputy Governor Usha Thorat said on Friday.

“The process is on to finalise guidelines for new banking licences. RBI will need to indulge in dialogue with all players concerned. We will also study international experiences, especially in case of applications by corporate houses or industrial houses,” Thorat said.

Official estimates indicate that just 30,000 habitations out of 600,000 habitations in the country have access to banking services.

Thorat said the main reason for call from finance ministry for an increase in banking licences was the lack of availability of banking services in many parts of the country.

“We will try to ensure the adherence to best practices, that are important for the country, so that we come up with guidelines that will boost penetration of banking services in the country,” Thorat said.

Finance Minister Pranab Mukherjee in Union Budget announced plans for grant of additional banking licences to private sector players and non-banking finance companies.

Following the announcement, Thorat had said RBI would keep in mind its existing principles on ownership and governance while drawing up the guidelines for issuance of new bank licences.