Guidelines to facilitate entry of serious players: Kochhar

License norms are comprehensive, cover all issues relating to entry of new banks

Top banker Chanda Kochhar today said the RBI's guidelines for grant of new bank licences would facilitate entry of serious and credible players into the banking space.

Welcoming the Reserve Bank's move to open the banking sector for new players, ICICI Bank Managing Director and CEO Chanda Kochhar said: "The guidelines are comprehensive and cover all the issues relating to the entry of new banks."

"The Reserve Bank has clearly spelt out the regulatory framework for granting the licenses, for the ownership and management of the new banks and also for the non operating holding companies that the guidelines require to be set up," Kochhar told PTI.

"The guidelines seek to facilitate the entry of serious credible players," she added.

RBI last Friday issued its guidelines for grant of new banking licences and invited applications from aspirants.

RBI has said the applicants should have a past record of sound credentials, integrity and financial strength with a successful track record of 10 years.

RBI has fixed a minimum equity capital level of Rs 500 crore for the banking license aspirants, while capping the foreign holding in the first five years to 49% and mandating 25% of branches in rural area, among others.