Lok Sabha Question No. 416 (UNSTARRED), answered on 2019-06-24
Subject: New Banking Licences
Ministry: FINANCE
Asked by: Sougata Ray

## GOVERNMENT  OF INDIA MINISTRY  OF FINANCE DEPARTMENT  OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO. 416 TO BE ANSWERED ON THE 24 TH  JUNE 2019/ ASHADHA  3, 1941  (SAKA)

## New Banking Licences

## 416.  PROF.  SAUGATA  ROY:

Will  the Minister  of FINANCE  be pleased to state:

- (a) whether   the  Government   has  any   proposal   to  issue  new   banking   licences   in  the country;
- (b) if so, the details  thereof;
- (c) whether  a number  of State Governments  applied  for setting  up of State level  banks;
- (d) if so, the details  thereof  and the action  taken  by  the Government  in this  regard;  and
- (e) the details  of the role  of Reserve  Bank of India and the Government  in such types of banks?

## ANSWER

## The Finance Minister (SHRIMATI NIRMALA  SITHARAMAN)

- (a) and (b): Reserve  Bank of India (RBI) has issued Guidelines  for 'on tap'  Licensing  of Universal   Banks  in  the  Private   Sector,   dated  August   1,  2016  for  granting   licenses   for universal  banks  on a continuous  basis. RBI's Second Bi-Monthly  Monetary  Policy,  201920 dated June 6, 2019, has announced  RBI's intention  to issue Draft Guidelines  for 'on tap'   Licensing  of Small  Finance  Banks  by  the end of August  2019. Post 2014, RBI has licensed   two   New   Private   Sector   Banks   (in  2015),  ten  Small   Finance   Banks   and  seven Payments  Banks (during  2016 and 2017), details  of which  are at Annex.
- (e): RBI issues licences  to carry  out banking  business  to co-operative  banks  under  Section 22  of  the  Banking   Regulation   Act,   1949 (as  applicable   to  Co-operative   Societies).   RBI regulates   the  banking   functions   of  co-operative   banks   under the  provisions   of  the Banking  Regulation  Act,  1949 and the Reserve  Bank of India Act,  1934. These banks  are also  required   to  comply   with   instructions/   guidelines   etc.  issued  by   RBI  from   time   to time.
- (c)  and  (d):  RBI  has  informed   that   it  has  not  received   any   application from  any   State Government  for setting  up of a new  State level  bank.

## Annexure

## Lok Sabha Unstarred  Question  no. 416  for  answer on 24.6.2019,  regarding  'New Banking Licences'

List of Small Finance Banks, Payments Banks and New Private  Sector Banks

| S.                      | Bank                              | Date of                 | Date of                 | Registered office       | Registered office       |
|-------------------------|-----------------------------------|-------------------------|-------------------------|-------------------------|-------------------------|
| No.                     |                                   | licence                 | commencement            | City                    | State                   |
| Small Finance Banks     | Small Finance Banks               | Small Finance Banks     | Small Finance Banks     | Small Finance Banks     | Small Finance Banks     |
| 1.                      | CapitalSmallFinanceBank Ltd.      | 04-03-16                | 24-04-16                | Jalandhar               | Punjab                  |
| 2.                      | Equitas SmallFinanceBank Ltd      | 30-06-16                | 05-09-16                | Chennai                 | Tamil Nadu              |
| 3.                      | SuryodaySmallFinanceBank Ltd.     | 26-08-16                | 23-01-17                | Navi Mumbai             | Maharashtra             |
| 4.                      | UjjivanSmallFinanceBankLtd.       | 11-11-16                | 01-02-17                | NewDelhi                | Delhi                   |
| 5.                      | ESAF SmallFinanceBank Ltd.        | 18-11-16                | 10-03-17                | Thrissur                | Kerala                  |
| 6.                      | UtkarshSmallFinanceBank Ltd.      | 25-11-16                | 23-01-17                | Varanasi                | Uttar Pradesh           |
| 7.                      | AU SmallFinanceBank Ltd.          | 20-12-16                | 19-04-17                | Jaipur                  | Rajasthan               |
| 8.                      | NorthEast SmallFinanceBank Ltd.   | 31-03-17                | 17-10-17                | Guwahati                | Assam                   |
| 9.                      | Jana SmallFinanceBank Ltd.        | 28-04-17                | 28-03-18                | Bangalore               | Karnataka               |
| 10.                     | FincareSmallFinanceBankLtd.       | 12-05-17                | 21-07-17                | Ahmedabad               | Gujarat                 |
| Payments Banks          | Payments Banks                    | Payments Banks          | Payments Banks          | Payments Banks          | Payments Banks          |
| 1.                      | AirtelPaymentsBank Ltd.           | 11-04-16                | 23-11-16                | NewDelhi                | Delhi                   |
| 2.                      | PaytmPaymentsBank Ltd.            | 03-01-17                | 23-05-17                | NewDelhi                | Delhi                   |
| 3.                      | India Post PaymentsBank Ltd.      | 20-01-17                | 30-01-17                | NewDelhi                | Delhi                   |
| 4.                      | JioPaymentsBank Ltd.              | 27-01-17                | 03-04-18                | Mumbai                  | Maharashtra             |
| 5.                      | FINO Payments Bank Ltd.           | 30-03-17                | 30-06-17                | Navi Mumbai             | Maharashtra             |
| 6.                      | NSDL Payments Bank Ltd            | 30-03-17                | 29-10-18                | Mumbai                  | Maharashtra             |
| 7.                      | AdityaBirla IdeaPaymentsBank Ltd. | 03-04-17                | 22-02-18                | Mumbai                  | Maharashtra             |
| New PrivateSector Banks | New PrivateSector Banks           | New PrivateSector Banks | New PrivateSector Banks | New PrivateSector Banks | New PrivateSector Banks |
| 1.                      | BandhanBank Ltd.                  | 17-06-15                | 23-08-15                | Kolkata                 | WestBengal              |
| 2.                      | IDFCBank Ltd.                     | 23-07-15                | 01-10-15                | Chennai                 | Tamil Nadu              |