Election Commission has allowed the Reserve Bank to issue licences for setting up new banks in the country.In a letter to RBI Governor Raghuram Rajan, the Commission today gave its nod to the Bank to take necessary action for granting approval in-principle for banking licences.On 12th of last month, the RBI sought the approval of the Commission for granting bank licences as model code of conduct had come into force after announcement of the general elections.