Press Esc to close
Monday 26 September 2016
News updated at 5:43 PM IST
Weather
Max: 27.3°C
Min : 19.8°C
In Bengaluru
Generally cloudy
Breaking News

Issue new licences, FM tells RBI

Pune, Nov 24, 2012 (PTI)

Says central bank acknowledges govt’s position and will take process forward

File photo

Finance Minister P Chidambaram made it clear to RBI that it has the powers to issue new bank licences and expressed hope it will take the process forward “appreciating” the government’s position.

“Let me emphasise that the three powers that RBI wants are already there with the RBI. It is already there in the regulation; it is there in the powers to grant the banking licences.”

“I am sure the RBI acknowledges and appreciates the well-considered position of the government and will take the process forward,” he told reporters after inaugurating the two-day annual national banking summit (Bancon 2012) here. The Finance Minister said amendments to the Act are simply to formalise powers that the central bank is seeking and bring them together into the legislation.

Formal reply


Asked whether RBI has formally responded to the Ministry that new licences could not be issued without the Bill being passed, Chidambaram said, “Well, I don’t know if a formal reply has been received to the letter that we sent 10 days ago. I don’t know what their formal position is.” Asked whether he is confident of getting the Act passed in the ongoing winter session of Parliament, the Minister replied in the affirmative. “I am pretty confident that the Banking Regulation Act will be passed as early as possible,” Chidambaram said.

“Even if the RBI picks up the thread and resumes the process that was started about a year ago of finalising the guidelines and issuing the first licence, that is going to take six to eight months and the occasion to invoke these extraordinary powers will not come the next day,” he said.

“The occasion to invoke these extraordinary powers will come only when that bank does something wrong. And that is not going to happen one day after the licence is granted.

“Therefore, by the time the occasion arises, the powers will be there in the Banking Regulation Act. So as stated by the then Finance Minister’s Budget speech, we must take the process of finalising the guidelines and receiving applications for new bank licences as early as possible,” he said.


Go to Top

Photo Gallery
Prime Minister Narendra Modi during BJP's National Council Meeting at Kozhikode...

Prime Minister Narendra Modi during BJP's National Council Meeting at Kozhikode...

Cyclists take part Cyclothon 2016 held on world car free day in Gurgaon...

Cyclists take part Cyclothon 2016 held on world car free day in Gurgaon...

Artists practice Garba in Ahmedabad...

Artists practice Garba in Ahmedabad...

School students at 'Mother Walk' rally to commemorate the canonization of Mother Teresa in Kolkata

School students at 'Mother Walk' rally to commemorate the canonization of Mother Teresa in Kolkata

Maratha community members hold a protest rally demanding justice for Kopardi rape victim...

Maratha community members hold a protest rally demanding justice for Kopardi rape victim...

An aerial view of the flood hit Edupalaya village in Medak district of Telangana...

An aerial view of the flood hit Edupalaya village in Medak district of Telangana...

Indian and U.S. army soldiers take part in an Indo-US army joint combat exercise in Ranikhet...

Indian and U.S. army soldiers take part in an Indo-US army joint combat exercise in Ranikhet...

St Patrick Church celebrating 175th anniversary in Museum Road, Bengaluru...

St Patrick Church celebrating 175th anniversary in Museum Road, Bengaluru...

Army personnel arrive to help flood affected people in Hyderabad...

Army personnel arrive to help flood affected people in Hyderabad...

Prime Minister Narendra Modi with BJP President Amit Shah wave to the crowd at public rally...

Prime Minister Narendra Modi with BJP President Amit Shah wave to the crowd at public rally...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523