Banking licences: RBI to meet industry bodies

The Reserve Bank of India is holding a meeting with industry chambers,including Indian Banks’ Association (IBA) and CII,tomorrow in Mumbai to discuss modalities for granting new banking licences to business houses and non-banking finance companies.

There is meeting of bankers with RBI Deputy Governor on new banking licences tomorrow,IBA Chief Executive K Ramakrishnan said. Select bankers,led by Bank of Baroda Chairman and Managing Director M D Mallya,would be attending the meeting,he said.

Members of industry chambers CII would also be meeting RBI Deputy Governor Usha Thorat.

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In August,RBI announced discussion paper on new banking licences and regulations for the same to foster greater competition.

“The Reserve Bank is considering providing licences to a limited number of new banks. A larger number of banks would foster greater competition,and thereby reduce costs and improve the quality of service,” the central bank had said in the discussion paper.