A High Level Advisory Committee (HLAC) was set up by Reserve Bank of India (RBI) on October 2013 under the Chairmanship of Dr. Bimal Jalan to screen the applications for grant of bank license under the RBI guidelines issued on February 22, 2013 for Licensing of New Banks in the Private Sector and to recommend licenses to only those applicants who comply with the guidelines. Bimal Jalan Committee has submitted its report to RBI.
The committee has granted ‘in principle’ approval to two applicants viz IDFC Limited and Bandhan Financial Service Private Limited, to set up banks under the Guidelines for Licensing of New Banks in the Private Sector issued on February 22, 2013. These two applicants were also recommended as suitable for grant of ‘in principle’ approval by HLAC. HLAC had also recommended that in the case of Department of Posts which has applied for license, it would be desirable for the RBI to consider the application separately in consultation with the Government of India. The RBI has accepted the recommendation of HLAC.