New bank licences only after RBI Act amendment

New bank licences will be given only after Banking Regulation Act amendment.

Ending all speculation about issue of final guideline for fresh banking licences without the amendment of the Banking Regulation Act, the Reserve Bank of India on Thursday said that neither the final norms nor the process for inviting application could be done without changing the law.

“As indicated in the draft guidelines, certain amendments to the Banking Regulation Act, 1949 are under consideration by the Government of India, including a few that are vital for finalisation and implementation of the policy for licensing new banks in the private sector. The final guidelines will be issued and the process of inviting applications for setting up new banks in the private sector will be initiated only after the Banking Regulation Act is amended,” said the central bank.

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Banking Regulation Act RBI

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