The Reserve Bank of India (RBI) is expected to issue a few new banking licences in the next few weeks after getting a go ahead from the Election Commission (EC) as the code of conduct for polls is in place.

"My sense is, if all goes well we should be able to do it in a few weeks. We have to (seek) the formal approval from the EC that announcing the bank licences will be okay," RBI Governor Raghuram Rajan told reporters after Finance Minister P Chidambaram addressed the central bank's board meeting.

He added there was a view that the code of conduct would not come in the way of issuing a bank licence as the process started last year, but still it would be best if it was formally approved by the EC.

Earlier this week, the finance minister had said the code of conduct would not be deterrent for issuing the new bank licences as the RBI was spearheading the process which started a year ago.

Replying to query today, Chidambaram said he had not made any recommendation to the RBI regarding bank licences. He said he has not seen report of the Jalan committee which scrutinised the applications.

As many as 25 entities, ranging from business houses to non-banking finance companies, have applied for bank licences. The list of applicants includes India Post, IFCI, Reliance Group, Aditya Birla group, Bajaj Finance, Muthoot Finance, Religare Enterprises and Shriram Capital among others.

"Once we have completed the due diligence, we will pass on the recommendations to the committee of the central board of directors (comprising the Governor and a Deputy Governor) and then a decision on issuing new bank licences will be taken," Rajan added.

RBI had constituted the Jalan committee to examine the fit-and-proper criteria, business plans, corporate governance practices, etc, of applicants. The committee had submitted its report last week. It is learnt to have left out tainted entities or those being probed be investigative agencies from the banking licence race. It apparently strictly followed RBI's norms which defined 'fit and proper' criteria. In that case, companies whose names figure in the 2G telecom spectrum scam and the coal block allocation scam, or those involved in other investigations may not be preferred for new licences. (Business Standard)