With pressure increasing on regulator Reserve Bank of India for bringing guidelines for new banking licenses, it has indicated towards a very tight process in selecting whom to give a license and whom not to.

"As much as these prescriptions are extensive, there are still gaps," said D Subbarao, governor, RBI, while talking in line with the draft guidelines for bank license coming up.

"As we contemplate allowing corporates to promote banks, there is need for changes in statutes and regulations to address these concerns," Subbarao said.

Major corporates like Tatas, Ambanis, Bajajs and Mahindras are all in line, eagerly waiting to gain entry into the banking space.

He said that the biggest point in favor of the corporates is that they have huge capital to invest coupled with acumen in business and management.

"We have sent a draft amendment to the Banking Regulations Act to the government and the government is working on it. So amendments to the Banking Regulations Act are necessary before we contemplate corporates coming into banks," Subbarao said.