RBI grants in principle approval for bank license to IDFC and Bandhan Financial services - Angel Broking

The reserve bank of India has granted 'in-principle' approval to set up banks to IDFC (Mumbai based Infra lender) and Bandhan Financial Services Private Ltd (Kolkata based microfinance institution). RBI is also to consider Department of Posts as recommended by High Level Advisory Committee (HLAC) in consultation with Government of India. The in-principle approval stands valid for 18 months during which IDFC and Bandhan Financial will have to meet all RBI guidelines to secure a permanent licence and begin banking activities. Total 25 applicants were screened by HLAC chaired by Dr. Bimal Jalan after being scrutinised by RBI for grant of license. Going ahead RBI plans to grant licenses more frequently, that is, virtually "on tap". Also entities which did not qualify for current process could reapply for differentiated licences going forward.

Source : Equity Bulls

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