India unveils rules for new bank permits in rural push
AFPMUMBAI -- India on Friday unveiled rules for issuing new bank licenses in a push to expand financial services into the country's rural hinterland where hundreds of thousands of villages have no banking outlets.
February 24, 2013, 12:03 am TWN
Ninety percent of India's 600,000 villages do not have banking facilities, the Reserve Bank of India says, while fewer than half of the country's 1.2 billion people have a bank account.
Private companies, public-sector groups and non-banking financial firms will be eligible to apply for licenses for new banks by setting up financial holding companies, the central bank said in a statement.
Groups seeking to set up a bank “should have a past record of sound credentials and integrity, be financially sound with a successful track record of 10 years,” the Reserve Bank said.
The minimum capital needed to set up a bank will be five billion rupees (US$91 million).