Mumbai, June 23: The Reserve Bank of India (RBI) today fixed timelines for various regulatory approvals and released a citizens’ charter for services.
The new schedule is part of the non-legislative recommendations of the Financial Sector Legislative Reforms Commission. The commission had suggested that the regulators move towards a time-defined approval process for all permissions, including granting a licence to do business and launching products and services.
The RBI said these timelines were indicative and in the event of the departments exceeding the timeline, they would revert to the applicant.
“In case an applicant does not get a response within the indicated timeline, they can approach the head of the concerned department. The department head will respond with the status of the application, the reason for the delay, request for additional information, if any, as well as the likely time for disposal of the application,” the RBI said.
According to the timeline, the department of banking operations and development must approve proposals from banks for acquisition or transfer of shares of five per cent or more within 90 days. It said the department should give in-principle approval for a private bank licence within 90 days.
In-principle approval to banks for an IPO, preferential issue of capital and QIP should be given within 30 days. Banks should get approval to set up a subsidiary, or joint venture, or to make strategic investments in financial services companies in 45 days.
According to the citizens’ charter for the RBI’s departments which have a public interface, the deposit accounts department should issue a cheque book within 20 minutes and demand draft should be issued in an hour.