New Bank Licenses: New banks may soon open in the country. Discussions are going on between the Reserve Bank of India and the Finance Ministry in this matter. In such a situation, licenses of some new banks may be approved in the coming time. New banks have not received licenses for 10 years.
New Bank Licenses: India may soon issue a new round of banking licenses after almost a decade. According to a Bloomberg report, officials of the Finance Ministry and the Reserve Bank of India (RBI) are discussing ways to expand the banking sector to promote long-term growth. It is being told that the government and the central bank are considering several steps to create more big and strong banks to support India’s ambitious economic development plans in the coming decades. The report says that these discussions are still in the initial stages. No final decision has been taken in this matter yet.
Let us tell you that after about a decade, there is a discussion between the Finance Ministry and RBI on how to increase the banking sector so that the pace of development can be promoted in the country for a long time. This can now open the way for the license of new banks in India. According to the report, there is a discussion on creating bigger, stronger and more banks. This will support the country’s economic growth.
RBI and Finance Ministry are brainstorming
According to Bloomberg’s report, many options are being considered between RBI and Finance Ministry. In this, big companies should be allowed to apply for bank license with a ban on share holdings.
Apart from this, in South India, where companies like Apple are increasing manufacturing, there is also a discussion on encouraging non-banking financial companies (NBFCs) to turn into full banking service. Along with this, it is also being considered to provide facilities to foreign investors to increase their stake in banks.
However, no response has come from the Finance Ministry and RBI in this matter yet. According to Bloomberg data, only two Indian banks, State Bank of India (SBI) and HDFC Bank, are among the top 100 banks in the world. At the same time, banks from China and America dominate the top 10.
Licenses were last issued in the year 2014
Let us tell you that the last time new banking licenses were issued by the government was in the year 2014. In the year 2016, large industrial and business groups were barred from taking banking licenses. Now this policy can be reconsidered. The atmosphere in the market was clearly seen with the news of new licenses of banks. On Friday, the Nifty PSU Bank index fell by 0.8 percent during early trade. While trading in the afternoon, there was a jump of up to 0.5 percent. This year it has increased by about eight percent.
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