RBI may allow realtors, brokers to apply for bank licences: Report

The Reserve Bank of India (RBI) may have softened its stance on allowing real estate firms and brokers to apply for banking licences, said a media report adding that the central bank may set aside its reservations about these entities while releasing its final guidelines this quarter.

Earlier RBI had said brokers and realtors would not be eligible to applying for the banking licences saying that "past experience with brokers on the boards of banks has not been satisfactory".

However, this decision of RBI met with criticism from not only corporate sector but also finance ministry on the ground that if banks were allowed to undertake broking activities, there was no reason why entities engaged in such legally permitted activities should be disallowed.

RBI deputy governor Anand Sinha recently said that regulator and the finance ministry would arrive at a common position on the issue.

Besides, the report said final guidelines may keep most of the proposals from the draft guidelines like the minimum capital requirement is expected to remain at Rs 500 crore.

Read more about: rbi
Story first published: Friday, February 22, 2013, 13:30 [IST]
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