A recent press report said that the emergence of new private banks in the country will not take place immediately. The finance minister had said in the budget that the Reserve Bank of India would grant fresh license to private sector banks in view of the growing market, but the Reserve bank of India has not come up with any guidelines so far. According to the government, the emergence of the new banks are expected to help in the financial inclusion. It must also be noted that the emergence of new banks increase the number of Car loan, Personal loan and other loan borrowers.
The officials of the Reserve Bank of India said that framing the guideline is taking more time than expected because the suggestions that are received from various quarters is wide-ranging. The officials also said that they are trying to incorporate all the suggestions and hence the framing of guidelines is consuming more time.
India’s leading business groups such as the Adiyta Birla Group, Religare Enterprises, the Tatas and Reliance are keen in entering the Indian banking sector where the entry of new faces will change the outline of the banking industry and increase the existing competition. The RBI had issued about a dozen licenses in the year 1993, among which only three still survives.
At present there are 27 public sector banks, 22 private and 31 foreign ones, apart from rural and co-operative banks.