Public sector company, Power Finance Corporation (PFC) is aiming to venture into banking sector after the discussion paper on new banking licenses was released by the Reserve Bank of India.
PFC, a non banking finance company (NBFC) will be selecting consultants for this aim.
A top official said, “Consultants will be appointed shortly. They will look at the possibility of converting PFC into a bank”.
In the discussion paper on new private banks, RBI has said, “Since NBFCs are already regulated by the RBI and have a track record, the ‘fit and proper’ concerns could be addressed more easily.
It also said, “The NBFC model, particularly for those in lending activities, has been successful in expanding the reach of the financial system and, thus, by converting to banks, this model could be scaled up to better leverage the benefits and achieve the objective of financial inclusion”.