bank-news

RBI panel recommends sweeping changes in banking structure

Mumbai, Jan.8 : The Reserve Bank of India (RBI) has recommended sweeping changes in the banking structure.


According to media reports, an RBI panel has suggested the setting up of specialised banks to cater to low income households to ensure that all citizens have bank accounts by 2016.

The panel has also suggested that the facility for withdrawal, payment and deposit should be set up within a 15-minutes walking distance anywhere in the country.

The panel, headed by ex-ICICI Bank executive director Nachiket Mor, was set up by Raghuram Rajan on the day of his taking over as the RBI Governor, to suggest steps for promoting financial inclusion.

The panel has advocated the setting up of 'Payments Banks' to "provide payment services and deposit products to small businesses and low-income households" with a maximum balance of Rs 50,000 per customer.

These banks can be set up with minimum capital requirement of Rs 50 crore, one-tenth of the Rs 500 crore required for full-service bank.

Permission to banks for pricing farm loans below base rate should be withdrawn, the Mor report said.

It has also been suggested that Aadhaar card should be used automatically to open a bank account.

RBI is currently sifting through the application of 25 companies to get into the banking fray for which one of the key eligibility criteria is their vision for financial inclusion.

--ANI (Posted on 08-01-2014)

bank-news headlines

Doha Bank to buy HSBC Bank Oman business in India

Yes Bank signs sponsorship deal with Indian Golf Union

SBI launches TAB banking, e-KYC

Bharatiya Mahila Bank to open 57 branches in FY15

IDFC, Bandhan Financial get banking licences

Infy banking product ranked market leader

Status quo seen in Indian central bank's first bi-monthly review

Women bank now in Meghalaya

Bharatiya Mahila Bank expanding base across India

All women's bank to open three branches in northeast India

ICICI Academy launches centre in Guwahati

ICICI Bank, MCSL tie-up for wage payment

Quick Links: Goa | Munnar | Pondicherry | Free Yearly Horoscope '2014

Comments

Your e-mail:


Your Full Name:


Type verification image:
verification image, type it in the box

Message:

Back to Top