The RBI has been flooded with requests for interpretation of its rules for grant of new banking licences and for clarifications on the ‘ambiguity’ in various areas, as more than 100 entities have evinced initial interest in seeking permission to set up banks.
The RBI released its guidelines for licensing of new banks in February, asking the aspirants to submit their applications by July 1.
Later, the central bank asked all the interested parties to seek any clarifications they might have on the issue by April 10, a deadline that ended last week.
Sources close to the development said that more than 100 entities appear to be interested in applying for the licence, going by the quantum of clarifications sought from the RBI in this regard.
However, only a few new players are likely to be granted banking licences, a senior official said.
The RBI is widely expected to allow 4-5 new players in an already highly competitive banking sector, he said, while adding that the central bank might issue 8-10 new licences, at the most.
Many large business groups such as Anil Ambani-led Reliance Group, L&T, Mahindras, Birlas, Religare and Videocon have already made public their intentions to apply for the licence, while many NBFCs including Shriram group, Indiabulls, India Infoline, IFCI and PFC have also shown interest.