India divided over RBI banking rules

Author: | Published: 6 Sep 2011

India’s banking sector is divided as to the benefit of the Reserve Bank of India’s (RBI) new draft guidelines for would-be entrants to the banking sector, with some branding the rules cautious and unclear.

The draft legislation, released on August 29, stipulates that companies generating 10% or more of their income from real estate, construction or broking, will not be eligible to set up banks in the country.

In addition, successful license applicants are expected to have “diversified ownership, sound credentials and integrity” as well as a “successful track...