Join Hands to Build a Smarter India: Sign in | Join now

RBI Finalising Licence Norms for New Banks: FinMin

Friday, 22 February 2013, 04:50 Hrs
Print Email

New Delhi:  The Reserve Bank is in the process of finalising the guidelines for licencing of new banks, Minister of State for Finance Namo Narain Meena informed the Lok Sabha.

Asked whether the International Monetary Fund (IMF) has given any suggestion to the government on the new banks licence, Meena said in the written reply that it has not received any suggestions from IMF.

He said, however, that in its recent report on India: Financial System Stability Assessment Update of January 2013, IMF has — in the context of the current bank licencing policy of RBI — indicated that the international experience supported the prudent policy position of disallowing industrial houses from promoting and owning banks.

The policy of RBI aims to address the concerns of “under the radar” risk transfer, concentration of risk across the group contagion risk etc; through appropriate prudential means, he said.

“The IMF report lists out such prudential measures as setting up of a non-operative financial holding company to hold all the financial sector entities in the group and to be supervised by RBI,” he said.

As per the RBI’s draft norms released in August 2011, private sector entities or groups owned and controlled by Indian promoters, with diversified ownership, sound credentials and integrity, and having successful track record of at least 10 years, would be eligible to promote banks.

Recommendations on Retro-Tax Laws Under Examination: Government
Lupin Receives USFDA Nod for Suprax Oral Suspension

Source: PTI
Experts on SiliconIndia
Zafar  Ahmad
IT Project Manager
Prakash  Kumar
Director IT
Delta Electronics In
Aakash  Mulchandani
Sr. Engg
Siddharth  Sharma
Assistant Manager
Guruprasad  Hegde
Founder and CEO
Suresh  Avantsa
hubVirt Software
Chayan  Bhattacharjee
Manoj Chandraprakash Powar
Managing Partner
Sign Up for DailyDose and Read the Day's Highlights
Write your comment now
SiliconIndia About Us   |   Contact Us   |   Help   |   Community rules   |   Advertise with us   |   Sitemap   |  
News:       Technology   |   Enterprise   |   Gadgets   |   Startups   |   Finance   |   Business   |   Career   |   Magazine  |   Newsletter   |   News archive  
Cities:        CEO   |     Startup   |   Mobile   |   CIO   |   Women   |   BI   |   HR   |   SME   |   Cloud   |   Marketing   |   QA   |   Java   |   Web Developer  
Community:      Members   |   Blogs   |   Indian Entrepreneurs   |   Gyan   |   Advice   |   Community   |   Find   |   CXO Insights  
Job Board:      Jobs   |   Freshers   |   Companies   |   HR Speak   |   Forum  
Online Courses:   Web Developer   |   Java Developer   |   CCNA Training   |   SEO   |   SAS   |   SQL Server 2005   |   J2EE
Education:   MBA   |   MCA   |   Engineering   |   Training Institute
Life:          Real Estate   |   Travel   |   Finance   |   Gadgets   |   Movie Reviews   |    Jokes  
Send your feedback and help us continue to improve SiliconIndia
© 2014 InfoConnect Web Technologies India Pvt Ltd. all rights reserved