EC gives go ahead to RBI for issuing new banking licences

The Election Commission of India (ECI) on Tuesday gave its consent to the Reserve Bank of India in issuing new bank licenses for setting up of new banks.

"The commission has considered your request seeking guidance of the commission whether it would be appropriate for you to go ahead with the announcement of in-principle approvals for banking licenses in view of the current enforcement of the Model code of conduct," said the EC.

"The commission is of the view that Reserve Bank of India may take necessary action as deemed appropriate by the Bank as permissible under provisions of the Reserve Bank of India Act, 1934 Banking Reguration Act, 1949 or any other relevant law(s)," it further said,

The RBI had approached the EC on March 12 seeking its approval after the Model Code of Conduct had come into place.