The Finance Ministry and the Reserve Bank of India (RBI) are discussing the way to expand banking. Now, after about 10 years, work can be done on the license of banks. It is being said that the government and the RBI are considering steps to create larger and stronger banks to support India’s development plans in the coming years. If the report is to be believed, no final decision has been taken.
Let us tell you that the Finance Ministry and RBI have been discussing for a decade how to expand the banking sector, so that development in the country can be increased more rapidly. Additionally, licenses can be granted to new banks in India. If the report is to be believed, consideration is being given to establishing large and robust banks in the country. This will contribute to the country’s economic development.
RBI and the Finance Ministry are discussing
According to the report, several options are being discussed between the RBI and the Finance Ministry, including allowing large companies to apply for bank licenses with a ban on shareholdings. Now, in places like South India, where companies like Apple are increasing production, there is also discussion on encouraging non-banking financial companies (NBFCs) to convert completely into banking services. Apart from this, there is also discussion on providing facilities to foreign investors to increase their share in banks.
However, the Finance Ministry and the RBI have not yet given any answer in this regard. According to the data, there are two SBI and HDFC banks among the top 100 banks in the world. At the same time, banks of China and America are in the top 10.
Licenses were last issued in the year 2014
For your information, please note that the government last issued banking licenses in 2014. At the same time, in 2016, banking licenses were denied to large industrial and business groups. Now it is being reconsidered.