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RBI Fixes Timeline for Regulatory Approvals
Jul 02, 2014

To improve the response time, RBI fixed schedules for various regulatory approvals , including grant of private bank licences. It also released a citizens' charter for services such as clearing of transactions. The steps are part of implementing 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. In case an applicant didn't get a response within the indicated timeline, it could approach the head of the department, who would convey the status of the application, the reason for delay, request for additional information and state the likely period for disposal of the application.


According to the citizens' charter for RBI departments that interact with the public, the deposit accounts department should issue cheque books within 20 minutes, while demand drafts should be issued within an hour. Refinance facility and disbursement of loans should be carried out on the day an application in this regard is received, while clearing should be completed in three days.


Timelines have also been fixed for in-principle approval to banks for initial public offerings, preferential issue of capital and qualified institutional placements (30 days) and authorisation for import of gold and silver (60 days).


According to an FSLRC recommendation, all regulators have to shift to a time-defined approval process, subject to applicable laws, for all permissions, including licences for business and launch of products and services.

 

 


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