Capital needed for banking licence may be doubled if RBI accepts recommendations

To ensure that entities seeking private banks licence remained adequately capitalised to meet any eventuality, a Reserve Bank of India internal committee has recommended nearly doubling of the initial capital and net worth requirements to be eligible for getting a banking licence.

Under the on-tap licence being given by the RBI for these categories, the current initial capital requirement for a universal bank is Rs 500 crore and that of SFB is Rs 200 crore. Reuters

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