Mumbai: Making it tougher for aspirants, the Reserve Bank on Monday said it will look for very high quality applications to issue new bank permits and may not be possible to issue licences to all eligible applicants. "There is no predetermined number. RBI will be very selective while considering the applications for new bank licences. It will look for very high quality applications," the RBI said in a notification elaborating its response to the queries raised by various stake holders.
"It may, therefore, be not possible to issue licence to all the applicants meeting the eligibility criteria," it said. On timeline for granting in-principle approval for bank licence, RBI said: "It will not be possible to indicate the timeline for grant of in-principle approvals at this stage."
The RBI, which had on February 22 issued final guidelines for issuing new banking licences, on Monday came up with clarifications to various queries, as many as 443 from 39 entities, raised by prospective licence seekers. Applicants have to submit their applications by July 1 for evaluation to get new bank licence, it said, even as it extended the validity of in-principle licence nod from 12 months to 18 months.
The regulator also said after getting in-principle approval, the licencee has to open the branches within 18 months from the date of in-principle approval. "After the in-principle approval is accorded by RBI for setting up a bank, the promoters/promoter group have to set up the NOFHC and the bank within 18 months from the date of in-principle approval and the bank has to commence banking business within this period after obtaining the banking licence from RBI...," the notification said.
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