Financial inclusion plan main criteria for getting new bank licences: RBI

March 8th, 2013

The Reserve Bank of India (RBI) has said in its new banking license guidelines that the important criteria for processing the application would be the business model of the applicants and it should provide for financial inclusion.As per these guidelines, new banks are required to establish at least 25% of their branches in places with less than 10,000 population.As per the new norms, private corporates and public sector entities must have 10 years experience to be eligible to apply for new licence. The initial paid-up capital for new banks has been set at Rs 500 crore.


Budget Box: Government to infuse Rs 14, 000 cr in PSU banks next fiscal

March 3rd, 2013

In the Budget speech it has been announced that the government will infuse Rs 14,000 crore in public sector banks in next fiscal (2013-14).
Objective: To ensure that PSU Banks meet the Basel III regulations regarding capital adequacy.
Implementation of Basel III capital regulations envisages enhancing the requirement of core equity capital by banks due to higher capital ratios. The Basel III capital ratios will be fully phased in as on March 31, 2018.
The RBI has extended the date for implementing Basel III regulations by 3 months to April 1, 2013.
The Government had poured in about Rs 20,117 crore in public sector banks during 2010-11 and Rs 12,000 crore in 2011-12.

Budget Box: Banks can sell insurance products of multiple insurance firms

March 3rd, 2013

As per Budget 2013-14, banks will also act as brokers for selling insurance products of multiple companies