The long awaited final guidelines for issuing new bank licenses is expected to be released by the end of this fiscal. Two major issues still need to be settled in this regard by RBI and the finance ministry; one being the extent of foreign ownership to be allowed and the second being the time to be allotted to promoters to dilute their holding.

With almost two years having passed since the finance minister had introduced the matter in his budget speech, it is now high time that a final set guidelines comes to view.

Banks hold an important stature in maintaining the stability of the complete financial system of the country. Thus skeptical view is needed in deciding who is apt to set up a bank in the country and who not.

Regulatory intervention by the central bank, Reserve Bank of India is much needed and thus a proper set of guidelines for the same.