RBI’s Chakrabarty says only provisional list of new banks by Jan
New banks will take at least two years to become operational, says RBI deputy governor Chakrabarty
Reserve Bank of India (RBI) deputy governor K.C. Chakrabarty. Photo: Mint
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Updated: Sun, Oct 06 2013. 09 55 PM IST
Mumbai: Reserve Bank of India (RBI) deputy
governor K.C. Chakrabarty has said only a provisional list of new bank
licencees will be announced by January and it will take at least two
years for a player to become operational.
“Let me clarify, no new bank will come by January. A
provisional list of applicants who are eligible to get a licence will be
decided in January. New banks will take at least two years to come,” he
said here over the weekend.
RBI governor Raghuram Rajan has been repeatedly assuring
that some concrete action will be taken on issuing new bank licences
before the end of the term of deputy governor Anand Sinha, who is in
charge of banking department, in early February.
After announcing a panel headed by former RBI governor
Bimal Jalan to look into the issue, Rajan on Friday followed up by
announcing the remaining members of the committee. The panel includes
former RBI deputy governor Usha Thorat, former Sebi chief C.B. Bhave and
a former executive director at ICICI Bank Nachiket Mor.
Finance minister P. Chidambaram on Saturday said seven
licences will be issued in the current round of bank licensing. The RBI
had last issued licences in 2002, when Kotak Mahindra Bank and Yes Bank
were granted licenses.
Following an announcement by the then finance minister
Pranab Mukherjee, the RBI issued final guidelines on new banks in
February this year. The most notable feature is the decision to allow
corporates into the fray, provided they meet proper norms. But governor
Rajan, during his academic days, was vocal in speaking against letting
corporates into the banking domain. Twenty-six entities, including the
Tatas, Aditya Birla Group, Anil Ambani-led Reliance Capital and
Religare, apart from India Post, applied. Videocon Group, later on
withdrew its application.
Rahul kumar
PGDM 1st year
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