Banking regulator Reserve Bank of India has said that it would soon come up with the discussion paper for granting new bank licenses to entities seeking one.

"Very soon we are going to place the discussion paper in the public domain," Deputy Governor Subir Gokarn said. "It is in the final stages of drafting," he added.

The banking regulator was to come up with the guidelines for granting new banking licenses in July.

Finance Minister, Pranab Mukherjee had indicated during the Budget speech that, "RBI is considering giving some additional banking licences to private sector players. Non-banking financial companies could also be considered, if they meet the RBI's eligibility criteria."

Talking about curbing inflation he said that the apex bank has done sufficient to curb the same and its effects would be seen the latter half of the year. "We expect to see the effect in second half of this year", he said.