Corporate houses and their leaders are in strong favor of granting banking licenses to them. Industrial associations like FICCI, Assocham and CII have indicated their strong interest in a meeting with Reserve Bank of India to let corporate houses open banks in the country. They have said that eligible corporates with strong financial background to be allowed to enter the banking sector.

However, a contrast view has been presented by existing banks because they do not want any kind of competition to arise in their arena of business. They expressed such views in their meeting with RBI. But they had to mellow down in their thoughts after the RBI said that it has already decided that new banking licenses will be given out to fresh entrants.

FICCI has suggested that those industrial houses with strong record in the field of financial services for at least 10 years should be allowed to set up banks.

FICCI and Assocham have suggested that the RBI should fix the minimum capital requirement for gaining a banking license at Rs 1000 crore so as to make sure that only those players which have serious commitment to the business for long term gain entry into the segment.

Proposals have also been made that property exposure should not be more than 10% of the total assets and also that the ownership and control of the parent company should be separate from that of the financial services business. There should also be strict restrictions in inter company lendings between the owner company and the financial services wing.

FICCI also said that NBFCs should also be allowed to set up banks in the country.