Reserve Bank of India has finally brought out the discussion paper on fresh banking licenses and set it before the policymakers for their comments, suggestions and recommendations.
The last date for sending suggestions by the industry is September 30.
The apex bank has planned to grant not many bank licenses. The government had laid out the idea to induce fresh banking licenses to willing participants in order to spread banking services across the country and aid in the motive of financial inclusion.
Comments have been asked by RBI on issues like the minimum capital requirement and promoter shareholding in the new banks that would be coming up.
Discussion has also been raised regarding the foreign shareholding in new banks and that if corporate houses and industries should be allowed banking licenses or not.
So far 18 foreign banks have applied for banking license in India.
"Based on the feedback, comments, suggestions received on the possible approaches discussed in this paper and detailed discussions with the stakeholders, the RBI will frame detailed guidelines for licensing of new banks and invite applications for setting up new banks," the RBI said.