The decision on whether banking licenses would be granted to Non Banking Finance Companies (NBFCs) and Microfinance Institutions (MFIs) will be arriving soon, said Finance Minister Pranab Mukherjee.

"After contacting major stakeholders, the Reserve Bank of India will take a decision soon," Mukherjee said at Raghunathganj in Murshidabad district.

"RBI is considering new bank licences to promoters in the private sector and also NBFCs, if they meet the eligibility criteria," Pranab Mukherjee had said while presenting the annual budget for this fiscal.

The FM also said that banks need to increase the amount of lending to drought hit areas of West Bengal, Jharkhand and Bihar.

"We have to assess how fast farmers can start work on rabi crop and what amount of loan they need," he said.