Kolkata, June 15: The country has a lot of “unmet demands” for bank loans and a lot of gap is still to be filled in the banking space, Reserve Bank of India Deputy Governor Harun Rashid Khan has said. Also Read - RTGS Payment Facility to Be Available 24x7 from December 2020 | All You Need to Know
“We have a lot of unmet demands (for bank loans)…still a lot of gaps to be filled,” Khan said in reply to a question on the central bank’s plan to issue more licences for setting up new banks. Also Read - Policy Repo Rate to Remain Unchanged at 4%, Real GDP to Contract by 9.5% in 2021: RBI Governor | Highlights
Speaking to the media on the sidelines of a programme here on Tuesday, Khan said the RBI would finalise draft guidelines for issuing on-tap universal bank licences. Also Read - RBI’s New Guidelines For Credit, Debit Card Users Are Effective From Today | All You Need to Know
The RBI released in May the draft guidelines for ‘on tap’ licensing of universal banks in the private sector.(ALSO READ:Supreme Court admonishes Reserve Bank of India).
According to Khan, with more and more people in the country getting involved in economic activities and demand for credit rising, there is a greater need for different types of banks.
In August last year, the RBI granted ‘in-principle’ approval to 11 entities to set up payment banks and in the following month it also awarded 10 small finance bank licences.
Earlier, the RBI gave in-principle approvals to Bandhan Financial Services and IDFC Ltd to start new universal banks.