The government has extended term of RBI Deputy Governor Anand Sinha, who played key role in formulation of guidelines for new bank licences, by about 11 months.
Mumbai: The government has extended term of RBI Deputy Governor Anand Sinha, who played key role in formulation of guidelines for new bank licences, by about 11 months.
As a Deputy Governor, Sinha will be intrumental in overseeing the process of grant of new bank licences for which applications from interested corporates and PSUs have been invited till July 1, 2013.
The RBI is expected to give licences to new banks by the end of March 2014.
"According to a notification issued by the Government of India dated February 25, 2013, Sinha will continue as the Deputy Governor, Reserve Bank until January 18, 2014 when he completes the tenure of three years from the date on which he assumed office, that is, January 19, 2011," the central bank said in a statement.
Sinha, who is incharge of the Department of Banking Operations and Development, was first appointed as the Deputy Governor of the Reserve Bank in January 2011 for a period up to February 28, 2013.
Besides, he will continue to look after Department of Non-Banking Supervision and Urban Banks Department as well as Departments of Risk Monitoring, Information Technology, Expenditure and Budgetary Control and Legal.
Sinha joined the RBI in 1976 after completing his Masters in Physics from the Indian Institute of Technology, Delhi. In his career spanning over 34 years in RBI, he has been involved in formulation of several major regulatory and supervisory policies for commercial banks, it said.
Last week, the RBI issued the much-awaited guidelines for new bank licences, allowing corporates and public sector entities with sound credentials to enter the banking business.
As per the new norms, entities with a minimum track record of 10 years would be eligible for licence after clearance from sector regulators, enforcement, investigative agencies such as I-T Department, CBI and ED.
The minimum paid-up capital for setting up a bank will be Rs 500 crore. The cap on the foreign investment, including FDI/FII and NRI, has been set at 49 percent.
On receipt of licence, promoter has to start operations within one year and list the company within three years of commencement of the business, it said, adding, new banks should open at least 25 percent of branches in unbanked rural centres.