........The "in-principle" approval granted will be valid for a period of 18 months during which the applicants have to comply with the requirements under the Guidelines and fulfil the other conditions as may be stipulated by the RBI."
My View on "EC clears way for RBI to issue new bank licences":
It is a welcome decision of the EC to allow the RBI to do it normal functioning. But, in issuing licences to two NBFC-MFIs viz., Bandan and Janalakshmi, RBI may well consider if by issuing licences to these two entities, they may lose the character of providing microfinance services to the unreached as they may limit it to the extent of priority sector commitment only. Then these would become another new generation banks with microfinance and financial inclusion becoming show-case activities and not prime activities as hitherto being done by these entities.
- Santhanam
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