The discussion paper clearly shows that RBI is focusing on such new areas as whether big business houses should be allowed to float a bank, the kind of capital prescribed, penetration of banking and foreign shareholding. These are all relevant issues. We have in-principal shown our interest, but this is just a discussion paper, and not the final guideline.
I hope the guidelines will be conducive. On minimum capital requirement and promoter shareholding, some of these numbers have been doing the rounds, given the past experience of the central bank and the global financial situation. RBI has realised that there is a huge potential and a need for increasing banking presence.
So, it has agreed to open up the next round of licences. The paper ensures that only serious players with experience can apply for a banking licence. It has clearly indicated that the minimum capital requirement will be more than Rs 300 crore. In the discussion paper, RBI is encouraging new entrants who have the ability to build profitable banks and can go deeper into the country. For example, 75 per cent of our life insurance business are sold in semi urban and rural areas.