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RBI finally shuts the doors on corporate houses' bank licence hopes

The central bank's final guidelines for on-tap licences has upset the plans of many a big name that had drawn up elaborate plans for a bank

Outside RBI Headquarters in Mumbai.? Photo: Kamlesh Pednekar
Outside RBI Headquarters in Mumbai.? Photo: Kamlesh Pednekar

The Reserve Bank of India (RBI) has now made it clear that large industrial houses will not get a chance to launch commercial banks, upsetting the plans of many a big name that had drawn up elaborate plans to have a bank under their umbrella.  The issue of whether to grant big corporates a banking licence is as old as the exercise of granting licence itself. Back in 1990s, when the RBI doled out its first set of licenses, it left out industrial houses.   ALSO READ: RBI ushers in on-tap bank licence Again in early 2000s it did not award licences to the ...