NEWS & ADVICE : PERSONAL LOAN
How far can new banking licenses be banked upon?
By Vaibhav Aggarwal
Print    Email    RSS   

Financial inclusion has been the priority of the government since quite some time. In order to achieve its target of total financial inclusion in the country by March 2011, the government has been adopting several steps. Amongst them was the proposal given by Finance Minister, Pranab Mukherjee during Budget 2010-11 that new banking licenses be granted to eligible corporates and non banking financial companies (NBFCs).

Banking regulator, Reserve Bank of India has been working on the issue for some time and has come up with draft guidelines for issuing fresh banking licenses.

The two major contenders in the race are NBFCs and corporates. NBFCs' already come under RBI regulation and that could prove to be a plus point for them but there is quite some difference in the level of strictness in regulation for banks and NBFCs. The fact that the level of regulation is quite less for NBFCs than banks might pose an issue for these companies in getting a bank license.

Adequate capital requirement is an important criterion to be eligible for obtaining a banking license. This is because an entity with strong capital base can aid better to the goal of financial inclusion. If that be the case, then corporate houses stand a fair chance of getting selected in the race.

But a disadvantage associated with handing a license to them lies in the fact that they might get biased towards their respective associate companies and subsidiary units and give lesser priority to other clients.

Also, there is a clause that any corporate house dealing in the realty sector cannot enter the banking segment.


Page  | 12 |  
(Comments Posted : 1) Post Your Comments
1. Do you need a Loan?
Are you looking for Finance?
Are you looking for a Loan to enlarge your business?
I think you have come to the right place.
We offer Loans at low interest rate.
Interested people should please contact us on
For immediate response to your application, Kindly
reply to this emails below only:
mustaphamahmoodfinaid@gmail.com
call or add us on what's app +1 323-406-1670
Mustapha Mahmood (Posted: Nov 7, 2016)
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Now, Do Banking on Social Media Sites
Gold based financing; 'loan to buy gold...
Know about Form 16
How to decide on a loan for business?
Managing and emerging out of institutional...


ℂaℓℓ Girls in ℍinj℮wadi ℂall giℝls...
ℂaℓℓ Girls in ℍinj℮wadi ℂall giℝls...
ℂaℓℓ Girls in ℍinj℮wadi ℂall giℝls...
personal loan status of agreement number...
SIR/MADAM MY SELF PRIYA SHARMA PAN CARD FFTPS3791P...
SANGRUR: CaℒL Giℛℒ In Bathinda 09855660911...

NEWS THIS WEEK
LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive