The Reserve Bank today released the final guidelines for issuing of new banking licences, allowing entities in the private and the public sector as well as non-banking financial companies to enter the fray.
"Entities/groups in the private sector, entities in the public sector and non-banking financial companies (NBFCs) shall be eligible to set up a bank through a wholly-owned non-operative financial holding company (NOFHC)," RBI said in a notification.
The document, however, does not mention how many licences will be issued.
July 1 is the last date for making the applications.
New banks will have to set up 25 per cent of its branches in unbanked rural areas.
The final guidelines sets 49 per cent cap on foreign holding in new banks and minimum paid-up equity capital is Rs 500 crore.
Existing NBFCs, if considered eligible, may be permitted to promote new banks or convert themselves into banks.
Unlike the draft guidelines wherein the RBI had expressed reservations about allowing realty players, brokerages and state-run enterprises into the fray, there is no such explicit mention in the final guidelines.
"Entities/groups should have a past record of sound credentials and integrity, be financially sound with a successful track record of 10 years," the final guidelines said. The paid-up equity capital should be Rs 500 crore and they will have to get listed within three years of operations, the guidelines added.
The RBI, which allowed private banks in 1993, had issued the last set of licences in 2001 to two entities-- Kotak Mahindra Bank and Yes Bank.
