PTI reported that corporate entities interested in setting up new banks including Reliance Capital and Religare have begun doing the groundwork after a key Bill was passed in the Lok Sabha last evening.
In a major step to reform India's banking sector, the Lok Sabha had passed the Banking Laws Bill, 2011, paving the way for foreign investments in the sector and establishment of new private banks. The Bill will allow RBI to supersede boards of private sector banks and increase the cap on voting rights of private investors in PSBs to 10% from 1%.
The RBI wanted the government to amend the banking laws before starting the process towards issuance of new banking licenses. The major groups interested in seeking new banking licenses, whenever RBI decides to give them, include Mr Anil Ambani led Reliance Group, financial services conglomerate Religare group, Larsen & Toubro and Shriram group.
