MUMBAI: The Reserve Bank of India (RBI) has called for additional information from companies that have applied for a banking licence and sought replies by the week-end. The central bank has also written to regulators, including the Securities and Exchange Board of India, Insurance Regulatory and Development Authority and Pension Funds Regulatory Authority, asking whether the banking licence aspirants meet the "fit and proper" criteria and if there are any regulatory concerns.
RBI is understood to have written to the finance ministry seeking clarification on proposals by public sector entities to set up banks. Of the 26 applicants, four-Department of Posts, IFCI, LIC Housing Finance and Tourism finance Corporation-are public sector undertakings. IDFC, another aspirant, was set up following an announcement in the Union Budget in '96. Since the grant of licences is dependent on the funding support from the promoter, the RBI has sought government's stand on the matter.
The information sought from the applicants include their income-tax filings and info on other companies within the group. According to sources, the applications are being screened by three teams under RBI executive director B Mahapatra. The teams are looking at separate issues such as group holding structure, business plan, compliance and financial inclusion. According to sources, the RBI may not consider firms that do not have resources to make an upfront investment of Rs 500 crore.
md.aquil alam
pgdm 1st sem
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