Banking licence applicants will have to comply with all the guidelines given by the Reserve Bank of India, according to Deputy Governor Anand Sinha.
According to reports, some applicants had asked for some dispensation from the mandatory requirements laid down by the RBI in its final guidelines for licensing of new banks.
“They (applicants) have been given a transition period, so we expect them to comply with all the requirements... All applicants have to meet our (RBI) standards and that is all I can say right now,” said Sinha on the sidelines of a financial inclusion conference organised by industry body FICCI.
With regard to a special consideration for India Post or dispensations of few applicants, Sinha said the RBI is in the process and looking at a committee. “The committee’s work will start once the internal scrutiny is over...It will be premature to comment on it. It is only after the scrutiny that we can take a definite view on India Post or the dispensation that has been sought by applicants.”
Broadly, the guidelines are in place and people have to comply with them, he added.
On the processing of the applications, Sinha said, “It is quite an extensive one because now we are looking at corporates as well. So, the workload is quite heavy in that sense.”
MFIs' second round of restructuring
On the microfinance institutions’ demand for a second round of restructuring, Sinha said the RBI’s stand is clear to not encourage a second round of restructuring.
He said some requests have come and the RBI is looking at it. “Let me clarify, we do not stop second time restructuring but what we say is that the asset classification benefits will not be available. We don’t stand in the way of restructuring,” Sinha clarified.