BANKING LICENSE:26 IN QUEUE

A banking license is a prerequisite for a financial institutionthat wants to provide  services. Under most jurisdictions the fundamental banking activities, such as taking deposits from the general public are exclusive to holders of a banking license. A non banking servicesis an institution that provides financial services without meeting the legal definition of a bank, such as holding a banking license

Licenses are typically issued by the banking regulatory body in which the bank is established. There is a relatively long and complicated procedure that goes into the application. This procedure will also depend on the type of bank license that you wish to apply for. Licensing is generally broken down into different categories, while each category has a different specialization, and a different time frame involved in the banking license application process....

A total of 26 applications were received, including those from the usual corporate heavyweights like L&T, the Tata group (Tata Sons has applied, not Tata Capital), Reliance Capital, Aditya Birla Nuvo, Bajaj Finserv, Videocon (in the name of Aurangabad-based Value Industries), apart from infrastructure financier IDFC, gold loan company Muthoot Finance, realty developer Indiabulls, micro financier Bandhan and Bangalore-based Janalakshmi. SKS Microfinance, India’s only listed microfinance company, was absent, though its chief financial officer had said it would consider applying.Among surprise entries were Noida-based little-known Smart Global Ventures and Gurgaon-based advisory services firm INMACS Management. UAE Exchange India, a remittance and foreign exchange services firm and Suryamani Financing, part of the Kolkata-based Pawan Kumar Ruia group also joined the fray.The Department of Posts, Tourism Finance Corporation and government-owned financial institution IFCI were among the public-sector entities that applied.Apart from these, India Infoline,Religare Edelweiss, Magma Fincorp, Muthoot Finance and SREI Infra Finance were also on the list of aspirants. In a statement issued on Monday, India Infoline said former Corporation Bank chairman, V K Chopra, would head its banking foray.The central bank has not formally communicated how many licences it will issue but sources indicate the number is unlikely to exceed eight.