Banking Licence to Private Sector Banks

The Union Finance Minister in his budget speech 2010-11 had mentioned that Reserve Bank of India (RBI) would be considering giving some additional licenses to private sector players. Accordingly, RBI studied the international practices and examined their experience with licensing of 12 new private sector banks consequent to guidelines issued in 1993 and 2001. Based on the above study, RBI prepared and placed a discussion paper on its website inviting comments/ feedback on certain aspects from the stake holders and public on 11.08.2010. Discussions with stakeholders were held on October 7 & 8, 2010. The comments/ suggestions received and views of the stakeholders are being examined by RBI after which final guidelines would be issued.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question raised in Lok Sabha today.