RBI has been flooded with requests for interpretation of its rules for grant of new banking licences and for clarifications on the 'ambiguity' in various areas, as more than 100 entities have evinced initial interest in seeking permission to set up banks.
RBI released its guidelines for licensing of new banks in February this year, asking the aspirants to submit their applications by July 1, 2013. later, the central bank asked all the interested parties to seek any clarifications they might have on the issue by April 10, a deadline that ended last week.
Sources close to the development said that more than 100 entities appear to be interested in applying for the licence, going by the quantum of clarifications sought from RBI in this regard.However, only a few new players are likely to be granted banking licences, a senior official said. RBI is widely expected to allow 4-5 new players in an already highly competitive banking sector, he said, while adding that the central bank might issue 8-10 new licences, at the most.
Many large business groups such as Anil Ambani-led Reliance Group, l&T, Mahindras, Birlas, Religare and Videocon have already made public their intentions to apply for the licence, while many NBFCs including Shriram group, Indiabulls, India Infoline, IFCI and PFC have also shown interest. Those reported to be interested in banking licence also include Tatas and Mukesh Ambani-led RIl group.
Many aspirants have roped in former bank chiefs and other senior bankers from India and abroad as consultants to help them prepare for seeking the licence. Interestingly, a large number of real estate players have shown initial interest despite their financial positions not being entirely in adherence to the norms spelt out by the RBI.
After July 1, the last date of application for bank licence, RBI will make public names of all the interested entities. RBI last gave bank licences around a decade back.As of now, RBI has collated all the clarifications sought from it with regard to licensing norms for new banks and they could be made public this week, sources said, while adding that the clarifications could be released as early as today.