New Bank Licence: Discussions are going on between the Ministry of Finance and RBI about how to increase the banking sector so that long-term development can be promoted within the country.

India Mulls For New Banks: After about a decade, discussions are going on between the Ministry of Finance and RBI about how to increase the banking sector so that long-term development can be promoted within the country. After this, licenses for new banks will soon be issued in India. Bloomberg has told about this in its report.

Licenses will be issued for new banks

According to the report, there is talk of taking several steps between the government and the central bank to fulfill the ambitious development plans of the country in the coming decades, one of which is to open the way for more and more strong banks. In this, the option is also being considered that big companies should be allowed to apply for bank license with a ban on share holdings. Apart from this, there is a discussion on giving incentives to convert non-banking financial companies into full banking services. Also, providing facilities for foreign investors is being considered.

Why was there a need?

However, there has been no comment from RBI or the Central Finance Ministry in this regard. But its reaction can be clearly seen in the market. Nifty PSU Bank index, which had fallen by 0.8 percent during the initial trade, jumped by 0.5 percent during afternoon trading. This year it has increased by about eight percent.

It is worth noting that no bank license has been issued in the country after the year 2014. The report says that in the year 2016, many industrial and business houses had sought license for bank permit, but now it is being reconsidered. However, allowing business houses to open banks will be a sensitive and big decision.