Finance Ministry | Status on New Banking Licenses

Reserve Bank of India (RBI) has issued Guidelines for ‘on tap’ Licensing of Universal Banks in the Private Sector, dated August 1, 2016 for granting licenses for universal banks on a continuous basis. RBI’s Second Bi-Monthly Monetary Policy, 2019-20 dated June 6, 2019, has announced RBI’s intention to issue Draft Guidelines for ‘on tap’ Licensing of Small Finance Banks by the end of August 2019. Post 2014, RBI has licensed two New Private Sector Banks (in 2015), ten Small Finance Banks and seven Payments Banks (during 2016 and 2017), details of which are at Annexure.

RBI has informed that it has not received any application from any State Government for setting up of a new State level bank.RBI issues licences to carry out banking business to co-operative banks under Section 22 of the Banking Regulation Act, 1949 (as applicable to Co-operative Societies). RBI regulates the banking functions of co-operative banks under the provisions of the Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934. These banks are also required to comply with instructions/ guidelines etc. issued by RBI from time to time.

This was stated by the Union Minister of Finance & Corporate Affairs, Smt. Nirmala Sitharaman in a written reply to a question in Lok Sabha today.

Annexure

List of Small Finance Banks, Payments Banks and New Private Sector Banks