RBI starts on tap bank license regime, apply anytime for starting universal bank – on tap bank license window not for big corporates : Now getting a bank license has become very easy. Any person or individual can apply with RBI for bank license anytime as opposed to limited period window earlier for issuance of bank license. Reserve Bank of India has released the norms and guidelines regarding it.
RBI starts On Tap Bank Licensing Regime
According to new guidelines, any individuals with atleast 10 year senior level experience in banking or finance field are eligible to apply for universal bank license. The licensing window will be on tap.
Large industry house barred from on tap bank license window
Large industry houses are barred to apply for bank license according to new guidelines. They can invest upto 10 percent in banks if they willing.
In 2004, Yes Bank and Kotak Mahindra Bank got license from RBI. After which no licenses were issued upto 10 years. After Rajan taking over as governor of Central Bank, he opened the banking license window again after which IDFC Bank and Bandhan Bank came into existence.
Other key guidelines to apply for Bank license are :
The license window will open for all time and applicant can apply anytime for bank license.
Foreign Participation will be as per the existing FDI norms, which is 74 percent.
Initially the minimum paid up capital required to open universal bank is 500 crore. Which should be less than 500 crore at any time after bank began operation.
The new bank will have to be listed on the stock market within 6 years.