IDFC, Bandhan first to get new bank licences 

Firms given 18 months to comply with rules; central bank to consult govt on India Post’s application

 NEW DELHI: Ending months of speculation and regulatory scrutiny, the Reserve Bank of India (RBI) on Wednesday said that it has given “in-principle” approval to Mumbai-based nonbanking finance company IDFC and Kolkata-based microfinance organisation Bandhan Financial Services to set up new banks in the country. 

 

 

The approval, which will remain valid for 18-months, comes a day after the Election Commission allowed the RBI to go ahead with the process as it did not violate the model code of conduct that prevents authorities from taking decisions that can influence voters ahead of polls.
Yes Bank and Kotak Mahindra Bank were the last ones to get bank licences in 2003-04.
RBI received 27 applications in July 2013 including IFCI, Reliance Group, Aditya Birla Group, L&T Finance Holdings and Muthoot Finance among others. Tata Sons and Videocon Group later withdrew their applications.

NAME- RAJ GAURAV

               PGDM 2 SEM