Why we need new banks fast

.....Subsequently, in 2003, two more new private banks were given licence -- Kotak Mahindra Bank and Yes Bank. The promoters had to bring in higher capital, Rs 300 crore each. This time too the objective was to intensify competition. Almost a decade since then, the competition has indeed intensified among banks but only on the urban turf and still at least 40 per cent of the nation’s adult population does not have access to banking services. Which is why India needs more banks. The RBI should not delay the process any more. It should go ahead and allow the “fit and proper” individuals, institutions and even industrial houses to set up banks.......

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