RBI to bring out on-tap bank licence norms soon

On the possibility of India Post getting into the banking fray, which is among the entities whose application has been kept in abeyance, Gandhi, who is in-charge of banking operations and development, said the government is in discussion with the RBI on it.

After the issue of two licences (IDFC and Bandhan) last month, RBI Governor Raghuram Rajan had said that possibly some of the two dozen applicants were more suited for operating differentiated banks, rather than running universal banks.

Additionally, the central bank is mulling to make licences available “on-tap” rather than making the process a once in a decade as is the practice right now.

Gandhi said an entity’s failed attempt at getting a bank licence will not have any bearing on its move to pick up a large shareholding in an existing bank.

“They might be rejected for bank licence, but as a shareholder if they are going to come, we will examine that. It won’t be a bar just because its (banking) licence has been rejected,” he told reporters on the sidelines of an event here, without naming L&F Finance. Some media reports last month had said L&T Finance, is looking at either picking up promoter’s stake in Yes Bank or merging with it.