RBI To Issue Guidelines On Differentiated Banking This Year

Reserve Bank of India (RBI) is planning to issue guidelines that will be used to grant differentiated and on-tap banking licenses later this year, said deputy governor R Gandhi.

Differentiated banks exist in developed markets, wherein they undertake specific banking activities such as retail, infrastructure financing, rural banking, etc., depending on the core expertise of the organisation.

The companies that were unsuccessful in attaining licences from the apex bank in April can apply for differentiated and on-tap licences. Nearly 25 companies were in the race for new banking licences.

In April, RBI governor Raghuram Rajan had indicated that the central bank would soon start the process of issuing differentiated banking licenses.

RBI deputy governor R Gandhi also said the assessment of the monsoon rains on the economy would not be carried out until later.

The Indian monsoon recorded the weakest first month of the June-September rainy season in five years, weather officials said on Thursday (June 3). (Image: The Times of India)