NEW DELHI: The
Reserve Bank of India may be open to relaxing the initial equity
capital requirement of Rs 500 crore for setting up a bank if it fails to find
enough "fit and proper" candidates during the screening process.
The intention is to allow a greater number of players qualify, a senior official involved with the process of issuing new bank licences said.
Any final decision to tweak the guidelines would be taken by RBI, but the external screening committee headed by Bimal Jalan, former RBI governor, is expected to play a crucial role in recommending suitable changes.
RBI, in its 'guidelines for licensing of new banks in the private sector', had specified that the initial minimum paid-up equity capital for a bank shall be 500 crore. Asked about the possibility of relaxing the guidelines, the RBI spokeswoman denied any such move was in the works.
The intention is to allow a greater number of players qualify, a senior official involved with the process of issuing new bank licences said.
Any final decision to tweak the guidelines would be taken by RBI, but the external screening committee headed by Bimal Jalan, former RBI governor, is expected to play a crucial role in recommending suitable changes.
RBI, in its 'guidelines for licensing of new banks in the private sector', had specified that the initial minimum paid-up equity capital for a bank shall be 500 crore. Asked about the possibility of relaxing the guidelines, the RBI spokeswoman denied any such move was in the works.
According
to the senior official directly involved with the new bank licensing process,
the limit can be reviewed only after
