Norms for new banking licenses to be out by March-end

NEW DELHI - India’s central bank will come out with guidelines for new banking licenses by the end of March, Finance Minister Pranab Mukherjee said in his general budget Monday.

“The RBI (Reserve Bank of India) is planning to issue the guidelines for banking licences before the close of this financial year,” Mukherjee said while reading out his budget speech in the Lok Sabha.

The finance minister in his last budget had announced that the central bank would look at inducting more private players into the banking sector to widen the financial services net to unbanked areas and allow healthy competition in the sector.

The RBI has already come out with a discussion paper, seeking responses on who should be allowed into the crucial sector and soliciting views on issues like the minimum capital requirements of the new entrants.