FM hopes RBI would go for those who set up specialised banks
17 Nov 2013 4:08 AM IST
Finance Minister P Chidambaram on Friday suggested that the RBI should prefer those applicants for new bank licence who want to set up specialised banks rather than the ones keen to establish clones of existing lenders.
'I sincerely hope that when the new banking licences are given in January 2014 some licences would at least go to the people who have come up with innovative and different model of banking addressed to meet the needs of special segments of the people,' he said in in his inaugural address at Bancon 2013 here.
'It would be a pity if the new licences also goes to the bank which clone existing banks. I am confident that will not happen and innovative idea and innovative banking will gain recognition by the licencing authority,' it said.
Emphasising that there is a need for different kinds of banks, he said: 'We need banks which caters to communities, we need banks which cater to people living in what would call states where there is tribal population, we need a different bank to cater to the needs of North East...'
There is also need to promote banks which can cater to urban poor and farmer families, he added.
Noting that there is more cloning then differentiating, he said, 'I am happy that governor has spoken about differentiated banking licences.'
As many as 26 applications had been received for bank licences on the close on 1 July, 2013.
Tata group, India's biggest business group, and firms controlled by billionaires Anil Ambani and Kumar Mangalam Birla are among those which applied for bank licences.
Among public sector units, India Post and IFCI have submitted applications.
'I sincerely hope that when the new banking licences are given in January 2014 some licences would at least go to the people who have come up with innovative and different model of banking addressed to meet the needs of special segments of the people,' he said in in his inaugural address at Bancon 2013 here.
'It would be a pity if the new licences also goes to the bank which clone existing banks. I am confident that will not happen and innovative idea and innovative banking will gain recognition by the licencing authority,' it said.
Emphasising that there is a need for different kinds of banks, he said: 'We need banks which caters to communities, we need banks which cater to people living in what would call states where there is tribal population, we need a different bank to cater to the needs of North East...'
There is also need to promote banks which can cater to urban poor and farmer families, he added.
Noting that there is more cloning then differentiating, he said, 'I am happy that governor has spoken about differentiated banking licences.'
As many as 26 applications had been received for bank licences on the close on 1 July, 2013.
Tata group, India's biggest business group, and firms controlled by billionaires Anil Ambani and Kumar Mangalam Birla are among those which applied for bank licences.
Among public sector units, India Post and IFCI have submitted applications.
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