The Reserve Bank of India (RBI) on Monday released timelines for regulatory approvals and a citizens’ charter for delivery of services as part of implementation of the non-legislative recommendations of the Financial Sector Legislative Reforms Commission (FSLRC). “These timelines are indicative. If departments are likely to exceed the timeline, they will revert to the applicant,” the RBI said in a release on its website. If an applicant does not get a response within the indicated timeline, the entity can approach the head of the concerned department, the RBI added.
Under the department of banking operations and development, the in-principle nod for a private bank licence will take 90 days as will the approval to banks for acquisition or transfer of shares of 5% or more of paid-up equity share capital of the bank. The RBI added that ‘in-principle’ approval to banks for IPO, preferential issues of capital and qualified institutional placements will take 30 days.
Permission to start a subsidiary or joint venture in financial services companies or expanding the scope of para-banking activities of the bank or its subsidiary will take 45 days. Similarly, approvals to banks for offering activities, such as investment advisory services, portfolio management services or venturing into stock broking, mutual funds, venture capital funds, insurance or pension management departmentally will take 45 days.
For non-banking finance companies (NBFCs), issue of certificate of registration will take 45 days. Recognition of self-regulatory organisations (SROs) will also take 45 days. A no-objection certificate for an NBFC to sponsor an infrastructure debt fund will take 30 days as will conversion of existing NBFCs to other categories, such as core investment companies-non-deposit-taking-systemically important (CIC-ND-SI) , NBFC-Micro Finance Institutions (NBFC-MFIs), NBFC-Infrastructure Finance Companies (IFCs) and NBFC-Factors.
Under payment systems, authorisation for retail payment systems, which includes card payment networks, cross-border money transfers, ATM network, prepaid payment instrument operators and white-label ATM operators, will take 120 days.