The Reserve Bank of India on Monday clarified the muchawaited guidelines for new bank licences, allowing corporates and public sector entities with sound credentials and a minimum track record of 10 years to enter the banking business. Corporate houses and public sector entities like the Anil DhirubhaiAmbani Group, Larsen & Toubro, Tatas, Mahindra and Mahindra, Life Insurance Corporation and AdityaBirla Group can enter the banking business. However, it's up to RBI to evaluate if the applicant is fit and proper. The fit and proper criteria, if clarified, are a matter of judgement and indicative criteria for the same cannot be spelt out.
"The kind of disclosures the Reserve Bank is demanding from promoters and promoter groups will only see serious players applying for the licence," said a partner from a consulting firm. "It is a huge challenge for corporates to implement the proposed structure. One name that does not have any baggage and could have an edge over other applicants — Manipal Group with Janalakshmi Financial Services and Mohandas Pai and Religare Enterprise, which already operates as a non-operative financial holding company," he said. "However, having said that, the promoters of Religare EnterprisesBSE 2.64 % may have to face strict scrutiny by RBI due to the various troubles of Ranbaxy and their earlier venture with the US drug regulator. It is clearly left to the judgement of RBI," said the consultant. "Religare has been in the financial service space for more than 10 years. As far as Ranbaxy is concerned, the erstwhile promoters have clarified their position," said Shachindra Nath, Group CEO, Religare Enterprises. "Religare Enterprises is an independent financial services company run by an independent board and have no promoters," said Nath.
"The kind of disclosures the Reserve Bank is demanding from promoters and promoter groups will only see serious players applying for the licence," said a partner from a consulting firm. "It is a huge challenge for corporates to implement the proposed structure. One name that does not have any baggage and could have an edge over other applicants — Manipal Group with Janalakshmi Financial Services and Mohandas Pai and Religare Enterprise, which already operates as a non-operative financial holding company," he said. "However, having said that, the promoters of Religare EnterprisesBSE 2.64 % may have to face strict scrutiny by RBI due to the various troubles of Ranbaxy and their earlier venture with the US drug regulator. It is clearly left to the judgement of RBI," said the consultant. "Religare has been in the financial service space for more than 10 years. As far as Ranbaxy is concerned, the erstwhile promoters have clarified their position," said Shachindra Nath, Group CEO, Religare Enterprises. "Religare Enterprises is an independent financial services company run by an independent board and have no promoters," said Nath.
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