RBI proposes norms for on-tap bank licenses, rules out big business houses

Zee Media Bureau

New Delhi: The Reserve Bank of India (RBI) on Thursday unveiled norms for on-tap universal banking licenses leaving out big business houses such as Reliance, Tata and Birla which were aggressively trying for floating universal banks.

As per the proposed norms, RBI has mandated that the eligible player should have at least 60 percent income from financial services.

However, big business houses fail on this criterion and hence, automatically ruled out.

In addition, there is a provision laid down for a corporate entity should have a minimum asset size of Rs 5,000 crore and a successful track record of 10 years.

The corporate group has to float the bank through a non-operative financial holding company (NOFHC).