Press Esc to close
Friday 28 November 2014
News updated at 1:59 PM IST
Weather
Max: 29.2°C
Min : 16.5°C
In Bengaluru
Sunny day

No number in mind for new bank licences: RBI

Mumbai, July 15, 2013, (PTI)
Reuters File Image.

The Reserve Bank does not have any target in mind on the number of banking licences to be issued in this round, a senior official of the central bank said today.

"As of now we have received 26 applications. Financial inclusion has to be a pre-condition for such banks to come. How many banks will come that depends upon their complete plan and analysis of their proposals," RBI Executive Director R Gandhi said at an event here.

"We will have to wait for few months before we decide how many banks will be given licence. There is no target number," he added.


The number would depend on the proposal and business plans of applicants, he said. "It depends upon the proposal and business plans including their proposed efforts on financial inclusion. We cannot predict how many applicants will pass through these requirements," he added.

A total of 26 players have applied for banking licence, including the likes of India Post, LIC HFL, Reliance Capital, Aditya Birla Nuvo, and L&T Finance among others.

In the guidelines for licensing of new banks, the central bank has put in a string of requirements to further its financial inclusion agenda, including making it mandatory for proposed banks to open at least 25 per cent of branches in unbanked areas.

On the issue of financial inclusion, Gandhi said there are enormous challenges that lie ahead in achieving it.

"Post independence, we had a resolution to give attention to poverty alleviation. Our economic planning had poverty alleviation as a key plank...Still, these forty odd years, efforts have not made serious dent. This indicates the enormous challenges that lie ahead for us in achieving financial inclusion," he said.

He also said that several new ideas and innovative approaches were required to achieve this goal.

RBI Governor D Subbarao was originally supposed to address the gathering at a central Mumbai college today, but Gandhi had to step-in as a last minute arrangement as the Governor rushed to New Delhi. He was also not able to make it to another engagement at a college in the city.

Subbarao will be meeting Finance Minister P Chidambaram and they are likely to discuss challenges on the macroeconomic front.

Go to Top

Photo Gallery
Prime Minister Narendra Modi on his departure after attending SAARC summit...

Prime Minister Narendra Modi on his departure after attending SAARC summit...

A boy salvages for belongings amid the debris of his house in Mumbai...

A boy salvages for belongings amid the debris of his house in Mumbai...

Shyam Benegal with Naseeruddin Shah during the launch of the latter's book...

Shyam Benegal with Naseeruddin Shah during the launch of the latter's book...

Actor turned politician Kushboo with Congress vice president Rahul Gandhi...

Actor turned politician Kushboo with Congress vice president Rahul Gandhi...

An Indian army soldier keeps vigil near Pindi Khattar village...

An Indian army soldier keeps vigil near Pindi Khattar village...

Men play soccer at a field in Peshawar...

Men play soccer at a field in Peshawar...

NorthEast United FC players celebrate their third goal against Chennaiyin FC...

NorthEast United FC players celebrate their third goal against Chennaiyin FC...

An injured soldier is taken to hosp during a gunbattle with militants at Pindi Khattar village...

An injured soldier is taken to hosp during a gunbattle with militants at Pindi Khattar village...

Netanyahu attends the annual memorial ceremony for Israel's first prime minister, David Ben-Gurion..

Netanyahu attends the annual memorial ceremony for Israel's first prime minister, David Ben-Gurion..

Sharif holds hands with  Modi and  Ashraf Ghani during the closing session of the SAARC summit...

Sharif holds hands with Modi and Ashraf Ghani during the closing session of the SAARC summit...

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