New bank licences should be on tap: RBI paper

Issuing permits to new banks should be a continuous rather than an intermittent process to make the sector more competitive, the Reserve Bank of India (RBI) has suggested in a discussion paper on ways for the Indian banking system to grow.

Besides, there’s a case for converting urban cooperative banks into full-fledged commercial banks so more people can get access to banking even as niche banks and differentiated licensing for specialized banks could be the way forward, it said. Read More