4:59 AM
New bank permits: Not-on-list applicants put up a brave face
INDUSTRIAL groups put up a brave face after the Reserve Bank of India decided to give out only two bank licences on Wednesday. The licences to IDFC Ltd and Bandhan Financial Services will raise the number of banks in India to 41). The RBI. however, held out a promise that entities which did not qualify in the current round, will be able to apply afresh. "RBI believes that some of those entities, which did not qualify in this round for a full-Hedged banking iKrcncc.could well apply in future rounds or could apply for differentiated licences under the proposed framework', a release issued by the central bank noted.
Nil m.it Jain, chairman of India Info line, one of the permilaspiranlssaid. "We arc not disappointed as this Is only the first set of licences and RBI has promised that going forward it will be on-tap.'" The big industry names which had applied included Reliance Capital of the Anil Ambani group, the Aditya Birla Group, Bajaj Capital and Larsen & Toubro.
Shinjini Kumar. India head-Banking Capital Markels, PWC, said. "Hopefully, from now on, the RBI will issue bank licences more frequently." The RBI release slated that the two chosen companies were suitable for "in-principle" approvals based on the clearance given by the high- level advisorv committee (HLAC) under former RBI Governor Bimal Jalan.
The two will have an 18-month window to fulfill the guidelines stipulated by the RBI to offer banking services. "Until a regular licence is issued, he applicants would be barred from doing banking business," the RBI noted.
The HLAC had also recommended that in the ease of Department of Posts, which has applied fur Licence, it
Would be desirable for the RBI
lit consider the application
separately in consultation with the govermenet'Thc RBI has accepted the reccramendalion oflheFILACV'itsaid.
There had been considerable opposition to the grant of bank licence to industrial houses wit hin l he RBI and outside. Some of the corporate houses which applied for the licence an: facing investigation by various government agencies. For instance, chainna n of the Aditya Birla Group. Kumar Mangalam Birla. has been named in an FIR in the coal blocks allocation case. "At a time when there is public concern about governance, and when it comes to Licences for entities that are intimately trusted by the public, this may well be the most appropriate stance," the RBI said.
Nil m.it Jain, chairman of India Info line, one of the permilaspiranlssaid. "We arc not disappointed as this Is only the first set of licences and RBI has promised that going forward it will be on-tap.'" The big industry names which had applied included Reliance Capital of the Anil Ambani group, the Aditya Birla Group, Bajaj Capital and Larsen & Toubro.
Shinjini Kumar. India head-Banking Capital Markels, PWC, said. "Hopefully, from now on, the RBI will issue bank licences more frequently." The RBI release slated that the two chosen companies were suitable for "in-principle" approvals based on the clearance given by the high- level advisorv committee (HLAC) under former RBI Governor Bimal Jalan.
The two will have an 18-month window to fulfill the guidelines stipulated by the RBI to offer banking services. "Until a regular licence is issued, he applicants would be barred from doing banking business," the RBI noted.
The HLAC had also recommended that in the ease of Department of Posts, which has applied fur Licence, it
Would be desirable for the RBI
lit consider the application
separately in consultation with the govermenet'Thc RBI has accepted the reccramendalion oflheFILACV'itsaid.
There had been considerable opposition to the grant of bank licence to industrial houses wit hin l he RBI and outside. Some of the corporate houses which applied for the licence an: facing investigation by various government agencies. For instance, chainna n of the Aditya Birla Group. Kumar Mangalam Birla. has been named in an FIR in the coal blocks allocation case. "At a time when there is public concern about governance, and when it comes to Licences for entities that are intimately trusted by the public, this may well be the most appropriate stance," the RBI said.
This is recognition of micro finance sector and Bandhan's hard work to reach to unbanked areas and providefinanoal services.
CHANDRA SEKHAR GHOSH, CMD,Bandhan
We are not disappointed as this is only the first set of Licences and RBI has promised that going forward it will be on-tap. Since it has also been promised that those who lost out can apply again, we will evaluate the norms and decide on applying again
NIRMAL JAIN, Chairman,
India Inlohne
Granting banking licence to Band nan is most appropriate from financial inclusion point. IDFCisaptayer with deep roots and higher credibility...
ANANDABHOUM IK, Senior Drectorand Head of Finanoal Institutions, Inde Ratngs
CHANDRA SEKHAR GHOSH, CMD,Bandhan
We are not disappointed as this is only the first set of Licences and RBI has promised that going forward it will be on-tap. Since it has also been promised that those who lost out can apply again, we will evaluate the norms and decide on applying again
NIRMAL JAIN, Chairman,
India Inlohne
Granting banking licence to Band nan is most appropriate from financial inclusion point. IDFCisaptayer with deep roots and higher credibility...
ANANDABHOUM IK, Senior Drectorand Head of Finanoal Institutions, Inde Ratngs
Posted in: News 2014
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