A banking license will now be available on tap. RBI’s new draft rules say large industrial & business houses would not be entertained. So several medium-sized companies, along with large finance companies, may revive plans to apply for a license. The RBI has allowed some leeway: specialized activities can continue as separate entity under a holding company and professionals need not have a holding company structure. In the last round, only two of 26 applicants got a banking license.
Later, RBI approved 11 applications for payments bank and 10 for small banks, rekindling hopes of a green light for more banks, especially as half of India’s population is untouched by formal banking. Here’s a list of finance companies that may seek a universal banking license:
Courtesy : Economictimes.indiatimes.com