The Reserve Bank's decision to allow new players in the banking sector would result into improvement in efficiency, increase in capital base to meet the credit needs of the economy and generate huge employment opportunities, says a survey by industry chamber Ficci.
According to the survey which drew responses from existing banks, NBFCs, corporate and industrial houses and other stakeholders, the setting up of new banks is considered significant in view of the fact that only 35 per cent of the country's population have formal bank accounts as compared to an average of 41 per cent in other developing economies.
Eighty-eight per cent of the respondents felt that RBI's condition for an applicant applying for a licence to set up at least 25 per cent of its branches in unbanked area with a population of less than 9,999 will play a significant role in expansion of banking services and hence help in increasing financial inclusion.
Nearly 70 per cent of India's population lives in villages, it said, adding that a vast majority of approximately 6.5 lakh villages do not have a single bank.