June 9, 2013 8:42 PM

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RBI to come out with paper on banking structure: Subbarao

Reserve Bank of India will come out with a paper on the banking structure in the country discussing issues like consolidation even as it prepares to issue new bank licences after a decade. RBI Governor D Subbarao told the media that, enforcement agencies and tax authorities will be involved before issuing new bank licences to corporate entities for which applications can be made till July 1. Mr. Subbarao said the Narasimham Committee on banking sector, which went into this issue, had said that India must have some large banks at the global level, competitive and comparable with global banks.The panel also said the country must have some mid-sized banks and some small-sized banks which can penetrate more.Asked if the RBI has any number in mind for issuing new licences and whether there could be an extension of last date for receiving applications, the RBI Governor replied in negative.

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