The Reserve Bank of India today brought out a discussion paper on giving out new banking licenses to business houses and non-banking finance companies, and regulations for them to foster greater competition. The central bank said in a discussion paper, that it is considering providing licenses to a limited number of new banks, as a larger number of banks would foster greater competition, reduce costs, and improve the quality of service. The RBI said the new licenses are required since vast segments of the population, especially underprivileged, have still no access to formal banking services. The central bank sought feedback by September 30. The discussion paper outlines various pros and cons for norms like minimum capital requirements for new banks and promoters contribution, and caps on promoters shareholding.Currently, India has 27 public sector banks, 7 new private sector banks, 15 old private sector banks and 31 foreign banks, among others.