Former Reserve Bank of India (RBI)
Governor Bimal Jalan will hold the first meeting of a high-level panel on new bank licences, which he chairs, on Friday (November 1).
Other members of the
high-level advisory committee (HLAC) are former RBI Deputy Governor Usha Thorat, former Securities and Exchange Board of India Chairman CB Bhave and Director of the Central Board of Directors of RBI Nachiket M Mor.
There are 26 applicants for new bank licences, including Tata Sons, India's biggest business group, and firms controlled by billionaires Anil Ambani and Kumar Mangalam Birla. Among public sector units, India Post and IFCI have submitted applications.
RBI had issued guidelines for licensing of new banks in the private sector on February 22 and issued clarifications in the first week of June.
In his Second Quarter Review of Monetary Policy 2013-14 earlier this week, RBI Governor Raghuram Rajan said the central bank plans to issue new bank licences around January. Earlier this month, he said the central bank would endeavour to do "as much as possible" before RBI Deputy Governor Anand Sinha, who looks after new bank licences, retires in January.
In the past 20 years, the RBI
has licensed 12 banks in the private sector in two phases. Ten banks were licensed on the basis of guidelines issued in January 1993.
The guidelines were revised in January 2001 based on the experience gained from the functioning of these banks and fresh applications were invited. Kotak Mahindra Bank and Yes Bank were the last two entities to get banking licenses from the RBI in 2003-04.
In the 2001 round of guidelines for new licences, the external committee members were former government auditor CAG CG Somiah, former RBI Governor IG Patel and former State Bank of India head Dipankar Basu.
With inputs from PTI
PHOTO: Associated Press 
Special 
