RBI to convene meet on microfinance institutions issue

The Reserve Bank of India (RBI) will convene a meeting of banks to gauge their stand in relation to microfinance institutions (MFIs) in the interim period between the submission of the Malegam committee report and its study by the bank. RBI Governor Duvvuri Subbarao told mediapersons here Thursday that the meeting might be held in the next two weeks though the final decision is yet to be taken.

Banking licence norms by Jan

RBI will be ready with its draft guidelines on new banking licences by January, governor D Subbarao said on Thursday. It will put a gist of feedback received on the new licence issue in its website shortly. The RBI central board has on Thursday discussed issues like initial capital for new banks and their likely business model, and how would the promoters capital be diluted after initial years. We received a broad spectrum of feedback and there is no clear-cut opinion one way or the other, Mr Subbarao said