RBI grants Bank Licenses to IDFC & Bandhan Financial Services

RBI grants Bank Licenses

IDFC & Bandhan Financial Services get “in-principle” approval

After much speculation, today, RBI gives in principle banking licences to IDFC & Bandhan Financial Services to start banking within 18 months. Both IDFC and Bandhan had been recommended by the High Level Advisory Committee (HLAC) set up by RBI.

After withdrawal of 2 applications, 25 applications were considered by HLAC. India Post’s application to become a bank is also under consideration and discussions are on with the Government of India for the same.

RBI Governor Raghuram Rajan said “The process to award new bank licences was initiated in 2011 and it has spilled over to the election season because the due diligence process took a little longer, all regulatory processes have to come to an end.”

Click here for RBI Press Release.

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