New bank licences likely by FY14-end: FinMin

The new bank licences are expected to be issued by the Reserve Bank by the end of this fiscal, a top Finance Ministry official said.

"The RBI has answered 440-odd queries....Now, we have to see how many applications will actually come by July 1. Then those applications will be scrutinised by the internal committee of the RBI and subsequently by an external committee....

"I hope that if all goes well, we will have some kind of decision by end of this fiscal," Financial Services Secretary Rajiv Takru said.

Anything beyond this timeline would be a slippage, which is avoidable, he told reporters on the sidelines of an IMC-organised banking event here.

On June 3, RBI released detailed explanation to the queries from prospective licence seekers.

Takru, however, declined to give the number of new licences that would be given.

Earlier, the Secretary said despite pressure from various stakeholders to change the 25 per cent minimum branch opening requirement in rural areas by new players, the provision remained unchanged as the Government is aiming for higher penetration of banking services.