RBI fixes timelines for regulatory nods

Now, private entities aspiring to set up banks can expect to hear about the status of their applications from the Reserve Bank of India (RBI) in 90 days. The 90-day period for issue of in-principle approval for private bank licences would commence from the day the report of an independent external advisory committee was received, RBI said. To improve the response time, RBI fixed schedules for various regulatory approvals, including grant of private bank licences. The steps are part of implementing the non-legislative recommendations of the Financial Sector Legislative Reforms Commission (FSLRC). Timelines have also been fixed for in-principle approval to banks for IPOs, preferential issue of capital and qualified institutional placements and nods for import of gold and silver (60 days).