RBI Guidelines for New Private Banks

Know more about the guidelines

RBI released the Guidelines for “Licensing of New Banks in the Private Sector” in February 2013. As a part of the guidelines, RBI provided several parameters related to minimum capital requirement, corporate structure, ownership and governance, foreign shareholding, eligible promoters, specific provisions for NBFCs, business model considerations, etc.

• The objective of these guidelines is to frame an explicit policy on structure of new private sector banks as well as to outline application and selection process to guide the applicants.
• Opening of the banking sector by RBI to new private and public sector players, by way of issue of new licenses for them provides a tremendous opportunity to participate in the banking sector which has been growing at a high rate of around 20% since the last decade.