The Ministry of Finance has received the Reserve Bank of India’s (RBI’s) draft guidelines on new banking licences.
The guidelines, expected to be public by the month-end, were at the drafting stage and no firm view on paid-up capital and other issues had been taken, sources said.
RBI is likely to issue guidelines for new banking licences by the end of this financial year.
“RBI is planning to issue guidelines for banking licences before the end of this financial year,” Finance Minister Pranab Mukherjee had said in his Budget speech last month.
In August 2010, the apex bank had brought out a discussion paper on dispensing banking licences to business houses and non-banking finance companies, besides regulations to foster greater competition.