Draft guidelines for ‘on tap’ licencing of universal banks- (Reserve Bank of India) (05 May 2016)
Banking
The Reserve Bank of India took a major step towards replacing its ‘stop and go’ policy for licensing universal with a more ‘continuous’ process by releasing guidelines for the grant of licences for universal banks.
It had released a discussion paper considering the pros and cons of the new approach in 2013. Feedback on the proposals endorsed the idea for increased competition in the market.
One departure from earlier discussion has been the inclusion of resident individuals and professionals with requisite experience in banking and finance being eligible persons to promote universal banks. Large businesses, permitted to invest the bank, are excluded as eligible promoting entities.
Tags : UNIVERSAL BANK LICENCE CONTINUOUS PROCESS
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