 "R Gandhi")
“We are working towards issuing guidelines for full-service banks on-tap. I cannot give you a timeline, but it will be this financial year,” he said.
So far, bank licences have been given only during a particular timeframe, as specified by RBI. For instance, after the final norms on bank licences were released last year, it was said applications had to be filed within three months.
Gandhi said RBI had received comments on the draft guidelines on small and payment banks, which it had issued in July. “We are factoring those in and soon, we will come out with the final guidelines,” he added.
On corporate governance in public sector banks, he said, “Based on the recommendations of various committees, including the Nayak committee, we have made certain suggestions to the government. These include the positions of chairman and managing director be segregated; also, we should have a separate committee to appoint various directors on the boards of public sector banks. We have forwarded such suggestions to the government for discussion, and it will take the final decision.”
A report by the P J Nayak committee, set up to recommend steps to reform governance in public sector banks, had come up with several suggestions on the issue. These included reviewing the regulatory compliance requirements of boards, as well as regulatory guidelines on bank ownership. It had also recommended an examination of the norms on compensation to board members.
