India's election commission on Tuesday allowed Raghuram Rajan's Reserve Bank of India to announce new bank licences ahead of Lok Sabha elections set to conclude next month, according to a notice in the commission's website.
The Reserve Bank of India had sought the commission's approval to issue new bank licences to ensure the process would not clash with the code of conduct ahead of elections, which prevents decisions that may be deemed as political from being taken by government officials or regulators.
RBI Governor Raghuram Rajan during the announcement of RBI monetary policy at the RBI Headquarters in Mumbai(PTI)
RBI Governor Raghuram Rajan with RBI deputy governors during the announcement of RBI monetary policy at the RBI Headquarters in Mumbai.(PTI)
"The commission is of the view that Reserve Bank of India may take necessary action as deemed appropriate by the Bank," election commission said regarding the central bank's query.