Jalan committee submits report on new bank licences

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.

Comments

 

Other News

BJP will win all 26 LS seats from Gujarat in 2019: Vijay Rupani

Gujarat chief minister Vijay Rupani has claimed that the BJP will win all 26 Lok Sabha seats in the state in 2019 polls, thus repeating the 2014 general elections victory. Rupani was interacting with a group of reporters in Gandhinagar on Wednesday. Confident of the BJP’s win, Rupani denied C

Mumbai development plan 2034: Citizens, experts raise concerns

A public meeting was organised by the Urban Design Research Institute (UDRI) in Mumbai to discuss the concerns of citizens and urban planners on the recently released Mumbai development plan (DP) 2034.   The citizens and experts have expressed concerns regarding the shortage of time to

Actor Denzil Smith talks about his love for stage and more

Denzil Smith is a stage and film actor who has featured in several Indian and international productions that have achieved both critical and commercial success. Gurinder Chadha’s Viceroy’s House was based on partition in which he played the role of Jinnah. He also appeared in The Lunchbox a

Can the JD(S)-Congress combine give stable government in Karnataka?

Can the JD(S)-Congress combine give stable government in Karnataka?

Making palliative care child’s play

Sneha Sena is a unique attempt to integrate education and healthcare by bringing school children into the field of palliative care. In Kerala’s Alappuzha district, a government medical officer has decided to create an army of student volunteers to be part of the government’s pain

An African salient

To counter Beijing’s aggressive agenda in the Indian Ocean, New Delhi is seeking to create strategic bastions in Mauritius, Seychelles and Madagascar. The immediate provocation was China’s inauguration of its first overseas military base in Djibouti, in the Horn of Africa.

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter