Issuing new licences will add to competition, grow banks and improve services

....Licensing of new banks has always been a contentious issue. The RBI has issued only 12 new bank licences since the beginning of reforms, even while the number of commercial banks has declined sharply from around 301 to 169 over the last decade. This has curtailed expansion of banking facilities, leaving more than 40% of households without a single bank account even now.....

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