A
High Level Advisory Committee (HLAC) was set up by Reserve Bank of India (RBI)
on October 2013 under the Chairmanship of Dr. Bimal Jalan to screen the
applications for grant of bank license under the RBI guidelines issued on
February 22, 2013 for Licensing of New Banks in the Private Sector and to
recommend licenses to only those applicants who comply with the guidelines.
Bimal Jalan Committee has submitted its report to RBI.
RBI,
vide its Press Release dated April 2, 2014 has granted ‘in principle’ approval
to two applicants viz IDFC Limited and Bandhan Financial Service Private
Limited, to set up banks under the Guidelines for Licensing of New Banks in the
Private Sector issued on February 22, 2013. These two applicants were also
recommended as suitable for grant of ‘in principle’ approval by HLAC. HLAC had
also recommended that in the case of Department of Posts which has applied for
license, it would be desirable for the RBI to consider the application
separately in consultation with the Government of India. The RBI has accepted
the recommendation of HLAC.
RBI
released a Discussion Paper on the mode of presence of foreign banks in India
on January 21, 2011. The ‘Scheme for setting up of Wholly Owned Subsidiaries by
foreign banks in India’ was released on November 6, 2013 after taking into
account the feedback received on the Discussion Paper from various stakeholders
and factoring in the lessons from the crisis which favours a subsidiary mode of
presence from financial stability perspective.
This information was given by the Minister of State for Finance, Smt. Nirmala Sitharaman in written reply to a question in Lok Sabha today.
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