The Reserve Bank of India’s Governor Raghuram Rajan has told that presently there is need to make the country’s banking system and to strengthen the market conditions thereafter. Earlier the RBI Governor had an interactive session with the Singapore’s Deputy Prime Minister Tharman Shanmugaratnam at a Confederation of Indian Industry (CII) meet.
To work towards to the improvement of banking sector, the entry of a whole new set of banks of different kinds will aid for the improvement of the sector currently. The RBI has given in principle approval to 11 payment banks and 10 small finance banks, which was made last year. Some of the entities are looking forward to start their operations later this year or earlier next year.
As per the new policy the Reserve Bank will explore the possibilities of giving license to other differentiated banks such as custodian banks and the banks which are concentrating on the whole sale and long term financing. The governor also stressed the need for enhancing capabilities the existing banks.
A deadline has been set by the RBI Governor as March 2017 for the banks to clean up the balance sheet. The governor has told finally that they have lot of new technology to do this and it is more important to do it in a safe way.
