Clarifications on new bank licenses to be issued next month: RBI

RBI released guidelines for new bank licences in February this year, asking the aspirants to submit applications by 1 July 2013. However, the central bank is expected to follow conservative approach and allow 4-5 new players in an already highly competitive banking sector

The Reserve Bank of India (RBI) is likely to issue clarifications on new bank licence guidelines as sought by interested entities by early next month, a senior RBI official has said.


“We have received queries from various entities. RBI will be posting on its website all the relevant clarifications with regard to new bank licence guidelines by this month end or early next month so that they get ample time to file applications,” a senior RBI official said.


RBI released guidelines for new bank licences in February this year, asking the aspirants to submit applications by 1 July 2013.


Many large business groups such as Anil Ambani-led Reliance Group, L&T, Mahindras, Birlas, Religare and Videocon have already made public their intentions to apply for the licences, while many NBFCs including the Shriram group, Indiabulls, India Infoline, IFCI and PFC have also shown interest. Those reported to be interested in banking licence also include Tatas and Mukesh Ambani-led RIL group.


However, the RBI is expected to follow conservative approach and allow 4-5 new players in an already highly competitive banking sector.


Many aspirants have roped in former bank chiefs and other senior bankers from India and abroad as consultants to help them prepare for seeking the licence. Interestingly, a large number of real estate players have shown initial interest despite their financial positions not being entirely in adherence to the norms spelt out by the RBI.


After 1st July, the last date of application for bank licence, RBI will make public names of all the interested entities. RBI last gave bank licences around a decade back.


A large number of clarifications could be relating to interpretation of various clauses of the new bank licence norms, as many entities had complained of ‘ambiguity’ on various fronts in the guidelines.


The applicants from the NBFC space have also sought to know whether the RBI would allow conversion of all their Tier-1 branches and locations into bank branches in case of the transfer of their existing activities into various banking functions.


They have sought to know what will happen to the Tier 1 branches that are not allowed to be converted to bank branches, sources said.


As per RBI's guidelines, those eligible to apply for banking licence include entities or groups in the private sector, entities in public sector and Non-Banking Financial Companies through a wholly-owned Non-Operative Financial Holding Company (NOFHC).


Clarifications have also been sought on the corporate structure of the NOFHC as well. The RBI has said the NOFHC shall be wholly owned by the promoters and should hold the bank as well as all the other financial services entities of the group.


Expensive death: Lack of innovative policy

Reading Jiban Patra’s sad story, one would conclude that our insurance companies have not thought on these lines; or if they do have a policy to cover such an eventuality, this must be made mandatory for all short-term travels abroad

Every year millions of people travel all over the world; and with the liberalization policy in vogue, millions of Indians travel abroad mostly for pleasure. Though one can guestimate that about 15% to 20% of them go for work.


While travelling to the US and Europe it has become mandatory for one's own safety to take a medical insurance due to exorbitant cost of hospitalization, should one unfortunately need such an attention.


Take the case of late Jiban Patra, a member of the Priyanka Chopra’s entourage, who, due to some reason was unable to go to Canada as he was unable to obtain a visa, breathed his last, and his body was discovered in the Los Angeles Hotel on 7th April. 


Apparently, the Bollywood star and her troupe were unaware of his death until it was reported in the press, and the LA Police took up the issue of investigating the cause of his death, and the initial inquest has pegged the immediate cause of death as a heart attack.


Meanwhile, the body had to be retained in the LA mortuary. Although the police department had given clearance for the body to be returned to India, the process of documentation and the cost of transporting the mortal remains, estimated to cost some $15,000 has been the biggest hurdle. 


Jiban Patra's family—his wife and two kids—living in Mumbai first had to take the shock of losing him but it must have brought more pain and anguish when the body was retained in the mortuary, with no one taking the responsibility to repatriate it to India. NRIs, mostly from Odisha, as Jiban belonged to this state, had to raise their voice, and the online community sought Priyanka Chopra to take the responsibility to arrange for the same.


Now, according to the media reports, Priyanka was able to obtain assistance from one of her friends, Uday, who was able to take up the issue through his legal advisor, as a sequel to which, she was able to plan her return to India.


Jiban Patra's body is expected to return to Mumbai this week. 


This is not the first time that a travelling Indian has lost his/her life abroad. Though millions travel every day on short and long trips, death occurs and brings the tragic news to the family of the deceased. The cause of death could be many; local formalities, which vary from country to country have to be complied, some autopsy has to be performed, and those accompanying the person who passed away, are stranded and in great distress. Most of the time, language of communication also adds to the misery. Indian Embassies are generally helpful.


So, what can we do? Here are couple of suggestions for the recommendations and implementations:


a) Insurance companies which sell overseas medical policies, which are generally for a short term (duration of the trip only) should include “body return” clause, in case of ‘death’ by any means. Considering the fact that more than a million Indians travel abroad, a token increase by say Rs200 per policy should take care of this unfortunate event.


b) The Indian civil aviation authority should direct Indian air carriers such as Air India, Jet Airways, etc, to provide a special rate for such an eventuality. In fact, the civil aviation authority should be able to persuade the airline industry that they should extend a humane consideration to help the family of the deceased by carrying the body for free or for a specially reduced rate. $15,000 is an awfully big sum.


c) The Indian Embassy or Consulate concerned must depute a person, who is conversant with the local language, to assist the family of the deceased, if they are with him/her (family here would mean to cover those associated with the deceased in that trip).


Reading the Jiban Patra’s sad story, one would conclude that our insurance companies have not thought on these lines; or if they do have a policy to cover such an eventuality, this must be made mandatory for all short term travels.


 It is now hoped that Priyanka would take care of Jiban Patra's family, and at least provide for educating his children, and provide a source of income for his wife.  


(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce and was associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)



Harish Kohli

3 years ago

At a small extra charge, Insurance Companies do have an option to cover "repatriation of remains" while on overseas travel. In fact most of the European countries require an overseas medical insurance which includes this clause before they issue a visa.

“It will take thousands, not hundreds, of years to clear the pending cases”

For democracy to flourish, a smooth functioning justice system is necessary. The efficiency with which the Indian judicial system works is disappointing. This has to do with the lack of judges, laziness of the courts and various other inefficiencies. Bhagvanji Raiyani, founder of the Forum for Fast Justice, explained all these problems and suggested the judicial reforms necessary to keep our country from descending into a state of chaos

Bhagvanji Raiyani is not a lawyer, but, even at 75, he is regularly arguing cases, having filed over 100 public interest litigations (PILs). In Moneylife Foundation’s seminar on Judicial Reforms: The Backbone of a Real Democracy, Mr Raiyani outlined the various problems that exist in the system and explained why the citizens of India shouldn’t just stand by and watch. He began the session by passing around a brochure that, aside from the history and plans of Forum for Fast Justice, contained a tally of the number of vacancies in the courts.

After letting the audience skim through the document for five minutes, Mr Raiyani said, “You can see in the brochure that 30% seats are vacant in the Supreme Court and high courts. The percentage is a little higher for the lower courts. For example, in Allahabad High Court, there are 160 vacancies, but only 34 judges are working. Who is responsible for filling up the vacancies? The judiciary itself. The Chief Justice knows, of course. For example, the Bombay High Court advertises positions in the lower courts in newspapers. In 2010, 100 vacancies were advertised and 100 judges were employed. Again in 2011, 100 positions were advertised, but only 40 were filled. For 2012, the number dropped to 55 out of 159 vacancies.”

Mr Raiyani says that despite being unable to fill up the positions on first attempt, no further steps are taken to ensure that the positions are taken. He says, “It’s just forgotten about by the judiciary, parliament and government. Something needs to be done. Another problem is that intelligent lawyers aren’t coming forward. One simple explanation is that the salaries are low. Pre-independence, the salary was Rs3,500. 20 years ago, the salary had been raised to only Rs4,000. Now it is high, at around Rs1 lakh, but that’s what intelligent lawyers earn in an hour. In the Supreme Court, lawyers charge Rs5 lakh an hour. So the salaries will need to be increased if we are to see intelligent people take up these positions.”

The Times of India recently published an article claiming that 3.3 crore cases are pending in the courts. It projected that this figure would increase to 15 crore by 2040. Mr Raiyani says that with so many cases pending and so many positions vacant, judges are severely overworked. He said, “In 2001, the Judges Association of India filed a PIL about their workload. They said that they couldn’t handle the crores of pending cases. In the UK, it said there were 51 judges per million people. In Canada, it was 75, in the US, 117. In India, the figure was merely 10.6 judges to a million people. They got a favourable order. The number was to be increased, but nothing has happened. There are so many vested interests that the end result seems unattainable. The Supreme Court is sleeping, the lawyers don’t want this either.”

As the founder of the Forum for Fast Justice, Mr Raiyani has been campaigning for judicial reforms for several years now. He said, “There is so much that is wrong with the system. For example, divorce cases of Muslims and Christians are handled by the high courts. All divorce cases must only be decided in the family courts. The high courts must handle appeals. Another problem is that most courts work only one shift. Some start at 11am and end at 5pm. Their productivity could be doubled. The nation needs the judges to work more.”

Justice Krishna Iyer, one of the most eminent judges produced by India, has said that even kirana shops are more organised than the lower courts. Mr Raiyani said, “If you go to the courts you’ll find that much is in disarray. Judges who have been transferred to another court still have notice boards, litigants aren’t informed of changes in timings or holidays.”

To what was being said about inefficiency in the courts, some lawyers present in the crowd took offence. Advocate Bapoo Malcolm, who delivered Moneylife Foundation’s last seminar, on Wills and Nominations, said, “Our courts aren’t perfect, but it is wrong to berate the judiciary in this fashion. The very reason we can sit here and talk about this is because our judiciary is protecting what is enshrined in our Constitution.”

Shailesh Gandhi, former Chief Information Commissioner, also discussed the problems in our judicial system, focusing on the unchecked granting of stays and adjournments. Lastly, Mr Raiyani answered the questions posed by one participant interested in filing a PIL himself. The question was regarding the costs of filing a PIL. Mr Raiyani said, “The cost of a PIL is insubstantial. You need stamps worth Rs250. Once this is done, you can argue the case yourself. If you wish to withdraw the case at any time, you can do so.”




3 years ago

Constraints are there. But it has to be accepted that the vigilant and alert judiciary is one limb which is sustaining the basic features of our Constitution. Here are some suggestions, keeping in mind the inadequate infrastructure and manpower to handle the 3 crore odd pending cases across the country:
• Pending cases which need to be decided within a year should be segregated and taken up on a priority basis by designated courts selected from those now in position.
• The remaining cases should be given to the remaining courts and new Special Courts should be put in place at all levels depending on the number of pending cases. Timeframe for final hearing of cases should be decided based on transparent norms.
• The present practice of listing cases should be replaced by IT-enabled system, out of turn hearings becoming exception rather than the rule.
• It should be ensured that the vacancies of judges are filled in time. Do away with ‘retirement age’ for all categories of judges till an acceptable judges to population ratio is achieved. This will reduce the expectations about ‘post-retirement’ assignments which preoccupy the minds of those in service.
• Make it compulsory for government and public sector organizations to expedite procedures where they are on either side of matters before courts. This is necessary as there is laxity on their side as cost and delay seldom affects the individuals who handle cases in government and public sector. This position is slowly creeping into big corporates also.
• Make necessary legislative changes to reduce procedural delays.



In Reply to M G WARRIER 3 years ago

The Working Style and Lack of Seriousness by Courts in Taking Lawyers Non-Preparedness Very Lightly ,Knowing that it will be adjourned easily.Adjournment Rules need Change.Their Own Working style Improvement in Lower Courts is a must.As Pointed out ,Class 4 employee can call the Litigants Listed for the In Morning itself from 8 to 10 AM,and Parties available for that Day so that after Judjes arrival ,cases can be Executed from 11 AM itself,instead of Doing it in AN only.This work can easily be done by outsourcing or engaging Temporary Employees also. Your Points are very Good.

Sweena Jain

4 years ago

The picture is dismaying.All regulation are enacted,but are never followed by courts.Only interest of judges and lawyers is taken care of.Litigants are not cared at all.


4 years ago

Once an old man told me he filed a case (civil)in a Munsiff court and subsequently the case went for appeals and the Higher Court remanded the case to lower court and it went again for appeal and finally the SC decided the appeal.

The interesting part of the story is that the case started when he was thirty years old and ended when he was sixty !!


4 years ago

If u have attended any court proceedings in India, you would be amazed at how inefficient they are. The whole forenoon session is wasted in a stupid exercise of "calling". Only those cases where both the litigants are present or agree to be present, are taken up. The rest are assigned new dates - again to be called on that day as well. It goes on like this... No wonder few cases ever get disposed of.


4 years ago

There must be a Time Limit for Adjournments.Cases are being adjourned for Months,if not Years.2or 3 ,Maximum 5 Adjournements are to be allowed.Lawyers takes cases very Lightly,Knowing fully well that they will be simply adjourned.If there is a Time Limit for Adjounments,Advocates will get Prepared well in their Cases.
In TN Kanchi Swamiji's Bail application case , it is simply adjourned,as the Sr.Lawyer hired by TN Govt. as He is in some other Court at that time, forcing Swamiji to suffer in Jail for some Days evenin TN Govt. False Case..He should have Explained to his Assistat,who might have argued them in Court.Thus Adjounment is given ,simply to Boost up Revenue of the Advocates.Are Court's working to get more Income to their Lawyers or to do Justice to Indians ?

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