Compliance
Indian Finance Minister Encourages Pan-India Banking Licences

The Indian financial services secretary,
R Gopalan is keen on creating an all-India licence for new
banking entrants, with the condition that existing banks enjoy a
level playing field, the Economic Times (of India)
reports.
The Reserve Bank is reportedly considering giving bank licences
to private sector players for the commercial banking industry
given the increasing number of international banks looking to tap
the country's rapid growth.
"There must be a level playing field for the existing banks
also," Gopalan was quoted as having said at a recent
State Bank of India event.
"It should not be a disadvantage to them. The guidelines will be
framed in such a way that it will not be disadvantageous to the
existing players."
Gopalan said that allowing more players to enter the Indian
financial market would help bolster healthy competition and push
financial inclusion. Under the proposed licensing
scheme, banks would be compelled to go beyond
localised operations and, instead, have to operate with a
pan-India offering.
"There are many numbers of unbanked villages and the potential
for banking in the country is huge," Gopalan added.