RBI to announce rules for on-tap bank licences soon
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The RBI will ‘shortly’ come up with new guidelines for differentiated as well as full-service bank licences and they will be issued on-tap basis, its deputy governor R Gandhi said on Saturday.
“We are working on guidelines for both full-service commercial banks and differentially licensed banks. We hope that with more number operating, the banking sector will mobilise more resources for faster economic growth, which will bring in financial inclusion and thereby support inclusive growth in a sustainable manner,” he said at the 6th ICC Banking Summit. Asked when the new guidelines are expected, he said, “We should come out with it shortly.”
Differentiated banking licences could pave the way for new categories of banks such as wholesale banks, retail banks and payment banks. “After the new guidelines, licences will be offered on tap,” the deputy governor said. On-tap licensing means entities can apply to RBI for opening a bank at any point in time.
On NPAs of the banking sector, Gandhi said the situation was a ‘little bit better’ compared to the same period last year, but stresses were still there. “Bad loans are always a concern. Compared to last year we are at a better position now. But still stresses are there. So, that is why our concentration is more on stressed assets and not just NPAs,” he added. (Financial Express)
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