Reserve Bank of India (RBI) Deputy Governor Anand Sinha informed media persons that the central bank would conduct both internal and external scrutiny to assess the applicants for new bank licenses.
The central bank would set up an external scrutiny panel for this purpose after the internal scrutiny is over, Sinha, who is in-charge of banking supervision, said on the sidelines of a Ficci event.
He
also said that the scrutiny would take some time as it is an extensive process as RBI is looking at corporate groups.
Further, he said RBI would not compromise on any norms
that require, among other things, net worth of Rs 500 crore and a holding company (of the proposed bank) that is unlisted and non-operative in a financial sense (NOHFC).
He said RBI expects all applicants to comply with all that requirements. The central bank has received 26 applications including those from Tata Capital, Reliance Capital, the Birlas, L&T Finance, Bajaj group and India Post.
Considering that Governor D Subbarao has only 30 days before he retires, it is almost certain that he will not take any call on the new bank licence front.
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