The Reserve Bank of India (RBI) will issue guidelines designed to grant on-tap and differentiated banking licenses during the current fiscal.
Differentiated banks are established in developed countries for specific banking purposes, including retail, infrastructure financing and rural banking among others, depending on the core expertise of the organization.
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The new initiative aims to give opportunity to the firms, which failed to get licenses from RBI in April, to apply for differentiated and on-tap licenses and set up the dedicated bank.
RBI governor Raghuram Rajan had indicated that the central bank would start the process of issuing differentiated banking licences soon, when the RBI granted in-principle approval for IDFC and Bandhan Financial Services to set up commercial banks in April this year.
Additionally, the apex banking regulator is also considering to allow establishment of payments banks and small banks with an aim to bring financial services to unbanked areas of the country.
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