Permission for new private banks to participate in government business will be based on RBI guidelines: FM

Finance Minister Nirmala Sitharaman on Tuesday said in Parliament that permission to new private banks for conducting government-related business will be given under the RBI guidelines.

Ms. Sitharaman, during the Question Hour in the Rajya Sabha, said the government has now “only indicated” the RBI to allow other private banks to perform government-related business to ensure there is a level playing field. “Now, following the existing norms based on which several banks have been given permission to do the business. So, those rules as per the RBI guidelines be applied on newer banks and new private banks which approach the RBI,” she said.