Corporates meeting norms to get banking licence: FM
- IPL spot-fixing: Chennai Super Kings owner's kin under police scanner
- IPL 2013 LIVE SCORE: Sunrisers Hyderabad vs Rajasthan Royals
- Jessica Lall murder: Actor Shayan Munshi, ballistic expert Manocha to face perjury trial
- BJP tears into UPA govt on 4th anniversary, says it lacks leadership
- BCCI was forced to encash Pune Warriors' bank guarantee: Sanjay Jagdale
Finance Minister P Chidambaram has said that companies fulfilling the banking regulator's guidelines should quality for banking licences. The Reserve Bank of India (RBI) is expected to issue final rules on new banking licences to private entities in the coming weeks.
"The RBI has drawn up draft guidelines, guidelines say that more licences will be given to the private sector... the governor told me he will give out guidelines in two weeks," Chidambaram told Reuters Television in an interview in London on Tuesday: "Whether any corporate or any kind of corporate will be excluded I cannot say."
"But if the guidelines are made out and transparently spelt out and if a corporate satisfies those guidelines, I don't see any reason why a corporate should not be given a licence."
The central bank had issued a draft set of guidelines in August 2011 barring entities with 10 per cent or more income or assets from real estate, construction and broking activities from starting banks. RBI is understood to have sent the guidelines to Delhi for vetting by the finance ministry. Chidambaram said in the interview that checks would be put in place to prevent misuse. "There will be clear firewalls and red lines which cannot be crossed."
The finance minister also said that the Budget next month will be a "responsible" one as general elections are 15 months away. Addressing global investors, on the fourth leg of his overseas roadshow that began last week, he said the government will implement many of the decisions and changes in the run-up to the polls. Chidambaram expressed confidence that foreign investment flows into India will improve after these roadshows which have shown that India has enormous goodwill.
Chidambaram said during the meeting in London, investors expressed reservations over political stability and capacity of the government to take reforms forward.
- Fixing probe now reaches Bollywood, son of Dara Singh held
- BCCI cashes Pune Warriors guarantee, 'disgusted' Sahara walks out of IPL
- Sreesanth spent Rs 1.95L on clothes, bought friend BlackBerry, paid in cash: Police
- Delhi firm with MoD as client is linked to Pak cyberattacks
- After Infosys, iGATE sacks Phaneesh Murthy for sexual misconduct
- 2 weeks after harassment, Haryana schoolgirls return, cops in tow