RBI will address concerns over new bank licences: FM

New Delhi: Finance Minister P Chidambaram on Friday said RBI will issue clarifications on new bank licence guidelines as being sought by prospective private sector corporates.

"The government has not asked RBI to clarify anything, what the RBI has put out is quite clear to us ... These requests of clarification have come from private parties ... RBI will offer clarifications," he told reporters here.

To address concerns of intended applicants, RBI yesterday had said it will issue clarifications on final guidelines for new bank licences.

The RBI last month had come out with guidelines on allowing licences to new private sector banks. As per the guidelines, the interested entities would have to send in their applications by July 1, 2013.

As per the new norms, corporates and public sector entities with 10 years of experience are eligible to apply for new licence.

The initial paid-up capital for new banks has been set at Rs 500 crore.

In his budget, Chidambaram had proposed setting up an all-women bank. He has set up a committee for preparing a blue-print for the all-women bank.

"We hope get a licence by October 31. We hope to satisfy the conditions of RBI for getting a licence. But this is a public sector bank and the government is the sole shareholder of that bank. So, don't mix it up the private sector bank guidelines," Chidambaram said.

PTI