Looking to strengthen its presence in rural areas, Srei Infrastructure Finance on Wednesday said it would apply for banking licence once the final norms in this regard are in place.

“We are interested in rural banking. If, after the final guidelines, we are qualified to apply, we will apply,” Srei Infrastructure Finance Chairman and Managing Director, Mr Hemant Kanoria, told PTI.

Mr Kanoria further said, “We are interested to go into the rural areas. We have a network in place as we are already working in the rural areas, so for us it should not be a difficult task.”

Earlier this week, the RBI unveiled the draft guidelines on new banking licences, allowing business houses with successful track record and a minimum capital of Rs 500 crore to set up commercial banks.

Service centres

“We have this company Srei-Sahaj which has put up common service centres in the villages. They are providing rural e-governance services, financial services, and are selling insurance in remote and rural areas,” Mr Kanoria added.

The new bank should open at least 25 per cent of its branches in un-banked rural centres to avoid over-concentration of their branches in the metros and cities which are already having adequate banking presence, the RBI said.

The draft, which follows a discussion paper on the issue by the central bank last August, does not specify the number of licences to be issued as part of the new policy.

The RBI had in 2001 issued two banking licences. In 1993, it had allowed 10 entities to float commercial banks.

At present, India has 26 public sector banks, seven new private sector banks, 15 old private sector banks, 31 foreign banks, 86 regional rural banks, four local area banks, 1,721 urban cooperative banks, 31 State cooperative banks and 371 district central co-operative banks.

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