Finance minister P. Chidambaram on Saturday made it clear to the RBI that it has the powers to issue new bank licences and expressed the hope it will take the process forward “appreciating” government’s position.
“Let me emphasise that the three powers that RBI want are already there with the RBI. It is already there in the regulation; it is there in the powers to grant the banking licences.
“I am sure the RBI acknowledges and appreciates the well-considered position of the government and will take the process forward,” he told reporters after inaugurating the two -day annual national banking summit (Bancon 2012) here.
The finance minister said amendments to the Act are simply to formalise powers that the Central bank is seeking and bring them together into the legislation.
Last week, after Mr Chidambaram asked the regulator to start the process of issuing the much-delayed new banking licences, on November 16, RBI governor D. Subbarao had said it would be not possible without fulfilling the enabling conditions.
Asked whether RBI has formally responded to the ministry that new licences could not be issued without the Bill being passed, Mr Chidambaram said, “well, I don’t know if a formal reply has been received to the letter that we sent 10 days ago. I don’t know what their formal position is.”