NEWS & ADVICE : FIXED DEPOSITS
Setting new branches in NE will not need RBI nod
By Neelima Shankar
Jan 3, 2011
Print    Email    RSS   

Banking regulator Reserve Bank of India has eased up regulations for opening new branches in the North East. The apex bank has indicated that no prior approval would be needed by banks to set up branches in the region. The declaration was made by a senior Tripura minister.

Despite regular efforts by RBI to convince banks to set up more branches in north east, the penetration level has remained significantly low. The apex bank had earlier acted to increase coin flow in the region too. The decision came in a meeting which was conducted between RBI Governor D Subbarao and Tripura's Finance Minister Badal Choudhury.

"Any commercial and nationalised banks can set up branches anywhere in northeast India without prior sanction of the RBI. The bank authorities can independently set up their branches in the region," Choudhury said.

"The RBI governor expressed discontent after learning that banks in some places in the North-East region have been providing banking services through business facilitators and business correspondents instead of setting up of bank branches," the minister added.

"Governor Subbarao said non-banking finance companies not recognised by the RBI, the Insurance Regulatory Development Authority or the Securities and Exchange Board of India cannot do any monetary business or take deposits," said the minister's statement.

"The Tripura government has undertaken an inquiry against the 84 non-banking finance companies in Tripura alone. The government has also sought advice from the RBI and the (federal) finance ministry about the state's possible steps," Choudhury stated.


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
FD: Opportunity for retirees to diversify...
Some Quick Facts about Wealth Tax in India!
Sweep in to Auto Sweep savings A/c
How to Invest to Save?
Medical Insurance: Save tax along with health


MEXING: CaℒL Giℛℒ In Hoshiarpur 09855660911...
Sakeela.CaℒL Giℛℒs In Kharar 0985566O911...
NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...

NEWS THIS WEEK
Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive