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    Timeline: Evolution of bank licensing in India

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    Modest beginning
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    Modest beginning

    The entire banking sector forms an indispensable part of India's economy. A sound financial system often stems from an early intervention. Here we take a look at the entire timeline of bank licensing in India:

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    Private Banks licensing
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    Private Banks licensing

    1993: 10 new private sector banks given banking licence. Promoters bring in Rs 100 crore capital

    2001: Initial minimum paid-up capital raised to Rs 200 crore from Rs 100 crore

    Agencies
    Paid-up capital/Voting rights
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    Paid-up capital/Voting rights

    2004: Transfer of more than 5% of paid-up capital allowed with only prior approval of RBI

    2010: Banks mandated to be set up through a wholly-owned non-operative financial holding company (NOFHC). NOFHC to hold minimum of 40% of voting capital to be locked for 5 years

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    RBI's intervention
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    RBI's intervention

    2016: RBI decides to issue on-tap licences to residents and professionals having 10 years of experience in banking and finance


    2018: RBI allows voluntary transition of urban co-operative banks and small finance banks

    Agencies
    On-tap for Small Finance Banks
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    On-tap for Small Finance Banks

    2019: Licensing of small finance banks will be on-tap with minimum paid-up voting capital/net worth requirement at Rs 200 crore

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