RBI conducts due diligence; new bank licences seen in FY15

The new banking licences are likely to be announced in FY15 as the Reserve Bank of India (RBI ) is still conducting due diligence on the applicants.

RBI Governor Raghuram Rajan on Friday said that the Bimal Jalan Committee’s report is currently being evaluated by an RBI internal committee. This committee will meet the Jalan panel this week on Wednesday, Thursday and Friday.

Also read: Mkt betting on L&T Fin, IDFC for new banking licenceIn these three days, they will seek clarifications on the Jalan Committee report and once their due diligence is complete, then the RBI board will take this up.

After taking a decision, the RBI will also have to seek an approval from the Election Commission on whether it can issue licences or not. That has still not been done and that will take its own time.

Considering the fact that there are only about 20 days left to the end of the fiscal, it is going to be a far shot for all these processes to be completed before the end of the fiscal and hence we may see the licences actually being issued in the next fiscal.