Assocham favours 10 new banks initially

NEW DELHI: Entities fulfilling stringent benchmarks should be permitted to open new banks, but the number should be restricted to 10-12 initially, industry chamberAssocham has proposed to the Reserve Bank. 

In a note submitted to the RBI, the chamber has further suggested that well-run large NBFCs should be considered for new bank licence if they fulfil other conditions. 

"Considering the uncertainties/volatilities associated with current business environment, RBImay consider giving out licences in a staggered manner to few players in a specific time frame. It could be a process, and not an event," the chamber said in a note to RBI. 

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