RBI says all banking licence applicants will have to comply with their norms By CMA Samir Biswal

There is also a committee on this, which is likely to be set up. “We are in the process, but the committee’s work will start after the internal scrutiny is over. We have some time,” said Sinha.

On the Know Your Customer (KYC) norms, he said there are still complaints that people find it difficult to open accounts. “What we gather is that RBI’s instructions are not really well percolated down into the branches and that is where banks have a responsibility to ensure that,” he said.

He suggested the identity requirements could be simplified for certain no-frills accounts. “Banks could also be encouraged to revise products suiting to these segments in terms of lower charges, lower or no minimum balance requirement etc.”

ALSO READ: RBI announces final guidelines on new banking licences

from a policy perspective, foreign banks are into setting up wholly-owned subsidiaries. “When that happens as per the discussion paper that we have issued, foreign banks would be almost at par with the domestic banks in terms of almost everything including branch expansion,” said Sinha.

When the wholly-owned subsidiary scheme kicks off, the whole of India will be available to foreign banks at par with the domestic banks. “Those who want to really exploit, there will be huge opportunities. This is a scheme in the discussion paper and I hope when the final scheme comes, it will be more or less on the same lines,” said Sinha.

This Article is written by CMA Samir Biswal. He can be reached at cmasamirbiswal@gmail.com

Subscribe to Studycafe by Email