MUMBAI: With the Reserve Bank of India's deadline for applying for a
bank licence fast approaching, the number of companies that have joined
the list is rising. IndiaInfoline, Bajaj Finserv and the India Post are
among the recent entities that have joined the ranks of licence
seekers.
"Bajaj Finserv Ltd has submitted its application to Reserve Bank of
India on June 26, 2013 for a Licence to commence banking business in
terms of section 22 of the Banking Companies Act, 1949. It is proposed
to do this by converting its subsidiary Bajaj Finance
Ltd into a Bank in terms of RBI Guidelines for Licensing of New Banks
in the Private Sector dated February 22, 2013" the company said in a
statement.
Although the postal department has been expressing its ambitions to
float a bank for long, RBI would have to create a special dispensation
for India Post as it does not fit into several of the criteria
prescribed by the central bank. Besides the prescribed norms, the postal
department would face a huge challenge in putting in place a core
banking solution that would facilitate a centralized view of all its
accounts. However, there are many who feel that the postal department is
ideally suited to spread RBI's objectives of financial inclusion. The department already mobilizes small investments through the postal saving scheme and it has a network that is larger than any bank.
IFCI, Bajaj Finserv, India Infoline would join a host of other entities like Religare Enterprises,Aditya Birla group, JM Financial and Srei, which have lined up plans to foray into the banking sector.
Source : http://timesofindia.indiatimes.com/
