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Guidelines for Granting Licences to Start Private Banks

The Reserve Bank of India (RBI) has finalized guidelines for granting licences to start banks in private sector. Vide its Press Release dated 22.02.2013, the RBI has released its Guidelines for Licences of New Banks in the Private Sector. Key features of the guidelines include eligible promoters; ˜fit and proper™ criteria; corporate structure of the Non-Operative Financial Holding Company (NOHFC); minimum voting equity capital requirements for bank and shareholding by NOHFC; regulatory framework; foreign shareholding in the bank; corporate governance of NOHFC; prudential norms for the NOHFC; exposure norms; business plan for the bank; other conditions for the bank and additional conditions for NBFCs promoting / converting into a bank. The detailed guidelines are available on the RBI website at www.rbi.org.in. As per these guidelines the eligible promoters can submit their application on or before 01.07.2013.

This was stated by the Minister of State for Finance, Shri Namo Narian Meena in a written reply to a question in the Rajya Sabha today.

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