All new comers to the banking segment have to be strong and have adequate source of capital in order to widen the base of financial inclusion in the country in a manner which is cost effective, said a top official of the bank.

The recent discussion paper released by RBI about new banking licenses has sought feedback from public regarding the capital requirement which should be kept as benchmark for the new entrants.

"I believe banks are to be strong to do financial inclusion. When I say strong I mean they have to have the capital, they have to have methods of operations, they have to have lower cost," Usha Thorat, deputy governor, said.

The financial inclusion plan of the government is of prime importance to all banks and financial institutions as they seek to spread banking facilities to all unbanked parts of India.

The new banks need a capital of Rs 2 billion to be able to raise it to Rs 3 billion in three years time. But as per Thorat, bigger and stronger financial institutions can go for better and cost effective financial services.

"We don't want banks to lose money because then they won't do it. They have to be able to have a sustainable business model and I think it is possible. Because today there is a huge dependence on the informal sector," she said.