Press Esc to close
Thursday 25 August 2016
News updated at 10:09 PM IST
Weather
Max: 29.3°C
Min : 20.8°C
In Bengaluru
Sunny day

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
Sarbananda Sonowal feeding baby elephants rescued during the recent floods at Wildlife...

Sarbananda Sonowal feeding baby elephants rescued during the recent floods at Wildlife...

Members of AISA and JNUSU shout slogans during their protest in connection of JNU rape case...

Members of AISA and JNUSU shout slogans during their protest in connection of JNU rape case...

Devotees form a human pyramid to celebrate the festival of Janmashtami, marking the birth...

Devotees form a human pyramid to celebrate the festival of Janmashtami, marking the birth...

A devotee performs prayers at a Lord Shiva temple submerged in flood water of Ganga River...

A devotee performs prayers at a Lord Shiva temple submerged in flood water of Ganga River...

An aerial view of a flooded area in Allahabad on Thursday...

An aerial view of a flooded area in Allahabad on Thursday...

A view of lighting at Sri Krishna Janamsthan temple during Sri Krishna Janmashtami festiva...

A view of lighting at Sri Krishna Janamsthan temple during Sri Krishna Janmashtami festiva...

Muslim women carrying their children dressed up as Lord Krishna and Radha for a program...

Muslim women carrying their children dressed up as Lord Krishna and Radha for a program...

Bollywood actress Sonakshi Sinha at a press conference to promote her upcoming film in Jaipur...

Bollywood actress Sonakshi Sinha at a press conference to promote her upcoming film in Jaipur...

A view of submerged temples in the flood waters of River Yamuna in Allahabad...

A view of submerged temples in the flood waters of River Yamuna in Allahabad...

Nuns distribute relief material to flood hit peoples at a camp in Allahabad...

Nuns distribute relief material to flood hit peoples at a camp in Allahabad...

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