Finance Minister Pranab Mukherjee has said that Microfinance Institutions (MFIs) may also get banking license from Reserve Bank of India to set up banks.

With this, the hopes of the largest MFI in the country, SKS Microfinance have risen and this was evident from the rise in the shares of the company.

"The RBI has framed a set of guidelines for setting up new banks. Following my announcement in the Union Budget, the apex bank is now planning to allow new entities to set up banks and has recently floated a discussion paper. Interested parties and stakeholders have submitted their suggestions to the RBI. The central bank will now finalise its view on the issue and soon allow new entities to take up banking activities,” Mukherjee said.

Reports say that MFIs like Bandhan have already expressed the interest in setting up banks in India.