RBI gives banking licenses to IDFC and Bandhan;

5 04 2014

Reserve Bank Governor Raghuram Rajan today defended handing out just two licences out of the 25 banking applicants saying the selection panel felt that some of them were better placed to serve as differentiated banks. While talking to reporters on the sidelines of the annual convocation of the RBI-run National Institute of Bank Management in Pune he said those were the set of applicants that the Jalan committee as well as the Reserve Bank were comfortable with . RBI Governor said that the RBI has opened up the possibility that those left out applicants can apply again once. Ending a process that began three years ago, the RBI on April 2 handed out just two licences from the 25 applicants to infra lender IDFC and Kolkata-based micro-lender Bandhan— leaving out notable biggies like Reliance Anil Ambani Group, the Birlas, Bajaj Group among 22 others, after the Election Commission gave the go-ahead a day earlier. The RBI agreed to consider the application of India Post in consultation with the government and advised other applicants to apply afresh after the central bank comes outwith new guidelines on granting licences ‘on tap. The RBI originally received 27 applications in July 2013, but Tata Sons and Videocon Group withdrew from the race, leaving 25 contenders.