New licensees may get more time to set up banks: Report

Reserve Bank of India (RBI) may grant new banking licensees more time to set up banks as against the one-year period fixed earlier by central bank in final guidelines released in February.

Media report said that entities will get one than one year now after receiving in-principle licences as RBI realizes that companies will need time to set up such a structure as approvals from boards and other legal requirements are involved.

RBI will release consolidated clarification on new bank licence norms on Monday in response to the hundreds of queries received so far from the banking aspirants. The central bank has decided to issue clarifications to all the queries in one go, instead of replying to all of them individually.

Sources close to the development said that most of the queries pertain to the non-operative financial holding company (NOFHC) structure, which was made mandatory by RBI. This NOFHC shall be wholly owned by the promoter or the promoter group and will hold the bank as well as all other financial services entities of the group.

Read more about: rbi, bank licences
Story first published: Monday, June 3, 2013, 9:30 [IST]
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