"NBFCs have an advantage, they have a customer base. If they get a licence, they can convert themselves into banks. But how it would be done, what are the other factors, I don't know...because a separate committee has been appointed (to award licences)," he added.
Last week, RBI Governor Raghuram Rajan had a separate committee for screening the list of applicants headed by former RBI chief Bimal Jalan, said the media report.
According to the reports, number of NBFC such as IDFC, LIC Housing Finance, Reliance Capital, L&T Finance, Edelweiss Financial Services and Bajaj Finserve have applied for banking licence.
Moreover, Chakrabarty also clarified that the banking regulator is not against zero interest loan. However he added that the regulator would want lenders to be transparent about the offering for consumer durable loans, particularly at a time where there is demand for loan during festive season.
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