BANKING LICENSES – A NEW ASPIRATION FOR NBFC MFI’S IN INDIA

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BANKING LICENSES – A NEW ASPIRATION FOR NBFC MFI’S IN INDIA

After the RBI released it’s revised draft guidelines for new banking licenses last month, a host of MFI’s has announced that they will be interested in acquiring banking licenses.

BANKING LICENSES – A NEW ASPIRATION FOR NBFC MFI’S IN INDIA

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Meeting new bank licensing norms tough for most MFI’s

Barring a few top players, banking is likely to be a distant dream for most microfinance institutions in the country. This is because the draft norms on foreign shareholding, minimum capital requirement, and diversified ownership structure would prevent micro-lenders from entering the banking space. BS

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Some of the MFI’s that have announced their plans to convert into a bank are:

BASIX
‘Raising capital for the bank would not be a challenge’ – Vijay Mahajan

The Reserve Bank of India’s (RBI) quest for financial inclusion through new banking licenses has caught the imagination of social entrepreneur Vijay Mahajan. A day after RBI released the draft guidelines on new bank licenses, Mahajan said the BASIX Group, a financial services conglomerate promoted by him, would apply for one. BS

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Bandhan
Microfinance firm Bandhan to apply for banking license

Bandhan, one of the largest microfinance institutions (MFIs) in India, will apply for a banking license soon after the Reserve Bank of India (RBI) comes up with a new banking license policy, a top company executive said Monday. DJ

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SKS Microfinance
SKS Microfinance may approach RBI for a bank license

SKS Microfinance, which is passing through rough weather, may approach the Reserve Bank for a banking license, according to sources. “Finer details are being worked out and (SKS Microfinance) may approach the RBI for a licence after the Board of Director’s approval,” a source said.

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