The Reserve Bank of India said the approval would be valid for 18 months during which the two financial firms will have to comply with the requirements laid down by the central bank, according to a statement.
The central bank said it will also consider the application of India Post, but under a separate process to be carried out in consultation with the government.
The central bank said 25 applicants had been considered, and judged under various criteria including analysis of their financial statements, track record of running their business over the past 10 years and potential to run a bank.
"RBI's approach in this round of bank licences could well be categorised as conservative," the central bank said in the statement. "At a time when there is public concern about governance, and when it comes to licences for entities that are intimately trusted by the Indian public, this may well be the most appropriate stance."
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