)
To expand the reach of banking, the Reserve Bank of India (RBI) on Monday said it was considering making the licensing process more frequent and allow free entry of banks as and when necessary.
“We propose to carry forward these ideas and come up with a detailed road map of necessary reform and regulations for free entry and making the licensing process more frequent, after we get comments from the stakeholders,” Deputy Governor K C Chakrabarty said.
RBI was in the process of issuing new bank licences consistent with the highest standards of transparency and diligence, he said.
RBI has already come out with a discussion paper on the banking sector, on which the regulator had invited comments from stakeholders. “The document explores the possibility of differentiated licences for small banks and wholesale banks, possibility of continuous on tap licensing and the possibility of converting large urban co-operative banks into commercial banks,” he said.
Currently the central bank is in the process of issuing new bank licences for which it has received applications from 26 public and private sector entities. RBI is likely to issue the licences by January 2014.
