Private companies and PSUs can set up banks: RBI

Three years after when it was first promised in the Union Budget of 2010-11 the RBI has allowed all the private and public sector companies to apply for bank license, paving way for the entire corporate sector. Besides these large MNCs financial service companies like LIC Housing Finance, Srei Finance may also seek a license. There is no exclusion of real estate companies from applying for license as widely know. The final norms announced issued draft guidelines. The final guidelines were delayed as the central bank insisted that the government amend banking laws to give it sweeping powers to replace the boards of banks and supervise in the group. Even after amendments guidelines went through a few iterations with the government asking RBI to knock out parts that excluded builders and brokers.

Source :  Accommodation Times News Service