New banking licences bring million-dollar offers for retired- and ex-bankers

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Its former heads of Indian banks and retired RBI governors who are making most currently out of the central bank's plan to issue new licences to private parties. As per media reports, companies are offering up to USD 1 million or up to Rs 5.5 crore a year to those forgotten names to seek help for securing the bank licence, followed by setting up of the bank.

However, even more surprising is another fact which is that bankers are insisting on a five-year contract with those aspirants even if they don't get the licence by the RBI.

Ever since the RBI expressed intentions to give new licences to the private players, big corporate names like Tatas, the Aditya Birla Group, Reliance Industries, Shriram group, the Mahindra Group and Videocon have been in the media for their plans to start banks.

Experts said that these old bankers are in demand as application process for licence is so cumbersome that it has to be backed by documents of up to 20,000 pages.

RBI has set July 1 as deadline to accept the applications along with all the requirements.

Read more about: rbi
Story first published: Tuesday, April 9, 2013, 13:30 [IST]
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