Licence norms transparent about what RBI wants: AB Grp

Ajay Srinivasan, CEO, Financial Services, Aditya Birla Group feels that Reserve Bank of India is very transparent in terms of what their expectation were. It was after the RBI, issued the final guidelines for licensing of new private sector banks.

He supported RBI and said that from the beginning made it thsi clear that it was around financial inclusion .

Below is the verbatim transcript of his interview to CNBC-TV18

Q: On the plain reading of the guidelines put out by the Reserve Bank, are you in the race or out?

A: I think the guideline is actually a broad range of people to apply. It is not applying too many filters at the initial stage other than some broad criteria. So yes, at this point in time it looks like someone like us would be eligible to apply.

Q: In terms of the eligibility criteria and the obligations that the Reserve Bank will impose if you were to get a bank license do you believe that the obligations are too many or are they fair and it gives you a level playing field?

A: I think that's the way the guidelines are. They are very transparent in terms of what their expectations are. They have said from the beginning that this is really around financial inclusion.

I think, like it was mentioned just now, the RBI does believe that one wants widely held banks. They believe depositor interest is more important than just the shareholder interest. So, it is consistent with their thinking. It is consistent with what they have been talking about in the guidelines. If one wants to apply, the n they have to apply under those conditions.