Jalan committee on new bank licences to meet on February 10

The Bimal Jalan panel which is scrutinising applications for new bank licences will hold a meeting on February 10.

"We are having our next meeting on February 10," Mr Jalan, a former Reserve Bank Governor who heads the panel, told PTI.

The committee held its first meeting on November 1. Other members of the high-level advisory committee are former RBI Deputy Governor Usha Thorat, former Securities and Exchange Board of India Chairman C B Bhave and Nachiket M Mor, Director of the Central Board of Directors of the RBI.

Initially, 26 entities evinced interest in entering the banking arena. Tata Sons, the holding company of the Tata group, withdrew its application in November, leaving 25 players in the fray.

Public sector units India Post and IFCI, private sector Anil Ambani group and Aditya Birla group submitted applications on July 1. Besides, Bajaj Finance, Muthoot Finance, Religare Enterprises and Shriram Capital have applied for the licences.

The RBI issued guidelines for licensing of new banks on February 22 and issued clarifications in June.

In the past 20 years, the RBI has licensed only 12 banks in the private sector in two phases. Ten banks were licensed on the basis of guidelines issued in January 1993.

The guidelines were revised in January 2001, based on the experience gained from the functioning of these banks, and fresh applications were invited. Kotak Mahindra Bank and Yes Bank were the last two entities to get banking licences from RBI in 2003-04.

India has 27 public sector banks, 22 private sector banks and 56 regional rural banks.

In the 2001 round of guidelines for new licences, the external committee members were C G Somiah, former government auditor CAG, I G Patel, former RBI Governor, and Dipankar Basu, former head of State Bank of India.