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Reserve Bank of India (RBI) Governor Raghuram Rajan on Tuesday hinted that the final licences for niche banks are likely to be issued in the first quarter of the 2015-16 financial year.
"The whole process for the universal bank licence was completed in three-four months. So, I would use that as the benchmark," Rajan told reporters at the post-policy meeting in Mumbai on Tuesday.
The central bank last Friday issued final guidelines on issuing licence for payment as well as small finance banks, aimed at improving savings habit and to boost financial inclusion.
The RBI has kept January 16 as the deadline for submitting the applications for such permits, while the apex bank may come up with another round at a later stage.
"January 16 is when we will get the applications (for payment and small finance banks). Once we get these applications the expert committee will scrutinise and then the RBI will go through it. We will do everything as fast as we can," the RBI Governor said.
When asked about the number of licences the RBI is planning to issue for such banks, Rajan said he does not have any number in mind.
Earlier in 2014, the central bank had given in-principle approval to set up a universal bank to IDFC and Bandhan. There were 26 applicants, which included the Reliance Anil Dhirubhai Ambani Group, L&T and Bajaj, among others.
"I don't want to put an upper limit or a lower limit, other than that probably the lower limit will not be two," Rajan said.
"We need to ensure that there are a variety of participants who are licensed so that we can learn from their experience," he added.
A host of non-banking finance companies such as Sriram Capital and Muthoot Finance have showed interest in setting up small finance banks. Those who have expressed interest in seeking payment bank license included Itzcash and Oxigen.
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