After NaMo Government swearing in ceremony, the thought process on differentiated banking licenses for the Indian populace is gaining ground.
The voice for more variety in Indian Banks is growing stronger day by day. Hence, Reserve Bank of India (RBI) in the near future will come out with policy guidelines for differentiated banking licences.
The new licences for banking operations including differentiated ones would be given “on tap” basis, R Gandhi, Deputy Governor of the Central bank said.
“We are currently working on the guidelines. Once we are done, we’ll take feedback and then the final announcement will be made,” Gandhi said on the sidelines of ICC Banking Summit.
“The new guidelines on different types of banks – universal, differentiated, etc – will be issued shortly. After these guidelines are issued…we intend to offer licences on tap,” he added.
Differentiated licences are those that come with restrictions on geographical reach or products offered by a new bank; and these include niche ones like retail banks or payments banks.
Once the guidelines are announced, there will be more clarity on the type of specialized banks Indians can look forward too.