New licenses for small and payment banks: RBI

The RBI will shortly invite fresh applications to grant new licenses in three categories such as small banks, payment and universal banks to fulfil the objective of the government for achieving financial closu

re.

The Ministry of Finance also is finalizing a cabinet note for financial restructuring of its banking and financial sector as also to broad base the debt market enabling corporates access to money on long term basis exceeding 25 years, Financial Services Secretary G S Sandhu said on Wednesday.

Sandhu informed that preparations were afoot to invite fresh applications for opening up of banks in the identified categories, wherein the priority of the government would be for smaller banks as these be able to tap the populace in the countryside.