Reserve Bank of India (RBI) is expecting a strong response for the new phase of bank licensing and the in-principle approval for the new banks is likely early next year, reports CNBC-TV18's Siddharth Zarabi quoting sources.
The central bank is expecting about 30 applications for bank licenses. There has been a lot of speculation as to how many licenses the RBI will issue. From discussions between RBI and the Finance Ministry, if a reasonable number of applications come, then the RBI could give the in-principle proposal by the first quarter of CY2014.
The guidelines have proposed that this in-principle approval will be valid for a year. There is no estimate on the final number of licenses. There isn't any fixed timeline in this regard and the last date for the applications is July 1.