Everyone is welcome, but with caveats:
* Corporates, NBFCs and public sector entities can set up banks. Broking and real estate companies can also apply.
* Promoters need to be financially sound with track record of 10 years.
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* Positive feedback from other regulators and investigative agencies critical.
Ring fenced structure:
* Promoters must set up banks through wholly-owned non-operative financial holding companies.
* Holding company and bank not permitted to lend or invest in any entity belonging to the promoter group.
* Shares of holding companies cannot be transferred to entities outside the promoter group.
Shareholding in the bank:
* Holding company to hold 40% stake in bank for 5 years.
* Holding company to reduce stake in the bank to 20% in 10 years, 15% in 12 years.
* Foreign shareholding capped at 49% for 5 years.
Capital requirements:
*Minimum paid-up capital of the bank must be Rs 500 crore.
*The bank needs to maintain capital adequacy ratio at 13% for initial 3 years.
*The bank must get listed within 3 years.
Other conditions:
* At least 25% of new branches must be in unbanked rural centres.
* At least 50% of the directors of holding company must be independent directors.
* The bank's board must have a majority of independent directors.
Application process:
* Applications for banking licences need to be submitted by July 1, 2013.
* RBI to issue in-principle approval after considering recommendations from a high level advisory committee.
* The in-principle approval will be valid for 1 year.
