India Considers Opening the Private Banking Sector

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Aug. 12 – The Reserve Bank of India has released a discussion paper that talks about possibly opening the private banking sector to new players.

“The RBI clearly expresses its intent to expand the banking reach in the country while focusing on maintaining financial stability,” said CII director-general Chandrajit Banerjee. This will make bank capital requirements and intent now open to other competition.

“All those entities who have the strength or capacity to manage banks should be allowed (to open banks) and RBI is capable enough to determine that capacity,” said the Federation of Indian Chambers of Commerce and Industry. The chamber agrees that more banks in India will lead to greater financial inclusion.