The Reserve Bank of India released on its website today, the Discussion Paper on “Entry of New Banks in the Private Sector”. The paper seeks views/comments of banks, non-banking financial institutions, industrial houses, other institutions and the public at large.
Suggestions and comments are invited on the following aspects delineated in the Discussion Paper:
Minimum capital requirements for new banks and promoters contribution
Minimum and maximum caps on promoter shareholding and other shareholders
Foreign shareholding in the new banks
Whether industrial and business houses could be allowed to promote banks
Should Non-Banking Financial Companies be allowed conversion into banks or to promote a bank
Business model for the new banks
Suggestions and comments may please be sent by September 30, 2010 to the Chief General Manager, Reserve Bank of India, Department of Banking Operations and Development, Central Office, 5th floor, World Trade Centre-1, Cuffe Parade, Mumbai-400005 or emailed.
After receiving feedback, comments and suggestions on the possible approaches discussed in this paper and detailed discussions with the stakeholders, comprehensive guidelines for licensing of new banks would be framed and applications invited for setting up new banks.
Chief General Manager
Press Release : 2010-2011/220