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Mar 06, 2013
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New bank licence norms under House panel lens
The new bank licence guidelines issued last month by the RBI have come under the scrutiny of the parliamentary standing committee on finance, led by BJP leader and former finance minister Yashwant Sinha.
Finance ministry sources told FE that the panel has sent queries to the government and the RBI seeking to know whether the banking regulator has provided enough internal checks and balances in the guidelines. Asked about the development, Sinha told FE that the panel has the powers to get all the information it needs about the guidelines. “We have to see whether there are any issues,” he said.The panel's objective is to ensure that there will not be any systemic problems as a consequence of corporates, especially real estate players and brokerage firms, being given the go ahead to enter the banking sector, the ministry sources said. “They (the panel) are looking into whether there is any lacuna or weak points in the norms. The RBI has to now certify that it's foolproof,” an official said, adding that the panel could call the people involved in framing the guidelines and stakeholders to testify before it.
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http://www.financialexpress.com
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