The final announcement by the RBI is likely to be made in March
GN Bureau | February 25, 2014
After having missed the January deadline, the Reserve Bank of India may grant licences to new banks in March as the Bimal Jalan committee submitted its recommendations to the apex bank on Tuesday.
"We have submitted report (on new bank licences) to RBI," said Jalan, who once headed the RBI in late 1990s and 2000s for two terms.
For the last four months, the committee has been scrutinising 25 applications. However, the names have not been disclosed by the committee comprising former RBI deputy governor Usha Thorat, former Securities and Exchange Board of India chairman C B Bhave and Nachiket Mor, director on the apex bank’s central board.
Speaking to Governance Now, S S Mundra, CMD Bank of Baroda, said, “It is not like we did not have enough competition already with the presence of banks, MFIs, NBFCs, etc. Also, the competition has gone up in the last two years with banks coming out with newer models and have done significant work. The newer players will definitely add more competition and this will be good for all of us to continuously improve and better ourselves.”
However, R K Dubey, CMD, Canara Bank has said that there is so much space and scope in the Indian market for everybody that the arrival of private banks will not be competition and will enhance financial inclusion only if all the players do it with passion.
The RBI had issued guidelines for the licence of new banks in February last year. IDFC, LIC Housing Finance, Anil Ambani's Reliance Group, Aditya Birla Group, Bajaj Finance, Muthoot Finance, Religare Enterprises, L&T Finance Holdings, India Bulls Housing Finance are among the companies who have applied for licences. In addition, applications were received from two public sector groups – IFCI and India Post.
According to the guidelines by RBI, the new banks will have to open 25 percent of their branches in rural areas, a move which could provide a major boost to the financial inclusion agenda.
The USA declaring Hizbul Mujahideen chief Syed Salahuddin as a specially designated global terrorist may not take the sting out of terrorists’ plans in Kashmir immediately but it has given a huge setback to Kashmiri separatists who had always hoped for American intervention in the Indo-Pak standoff o
Vani Jairam’s childhood dream of becoming a playback singer was realised when veteran film music composer Vasant Desai gave her the opportunity to sing Bole Re Papi Hara and two other songs in the movie Guddi. After that, the multilingual singer went on to sing for eminent music per
Should there be death penalty for those involved in lynching?
On May 23 this year, the ministry of environment issued ‘Rules on prevention of cruelty to animals (regulation of livestock market)’ with the purported aim of regulating animal markets. When one reads the rules – notwithstanding the lame efforts from union ministers to issue clarificati
BEML, a mini ratna category-1 enterprise of the defence ministry, has set a target of using 100 percent renewable energy for its own consumption. In this connection, BEML’s 9 MW Windmill Park installed at Bagalkot District in Karnataka was recently
Bharat Heavy Electricals Limited (BHEL), a Maharatna enterprise, has recorded nearly 14 percent growth in its intellectual capital in 2016-17 fiscal. During the year, a record 508 patents and copyrights were filed by the company, translating into filing of nearly two patents/copyrights