•  In February 2013, fresh guidelines for licensing of new banks were issued, inter alia permitting business/industrial houses to promote banks with a capital requirement of ₹ billion. 10  BIS central bankers’ speeches  Licensing policy for foreign banks •  At present, foreign banks operate in India as branches of the parent bank.
Currently, permission for opening of branches by foreign banks in India is guided by India’s commitment to WTO to allow 12 new branches in a year. Development financial institutions •  Development Financial Institutions (DFIs) do not require a banking licence. •  Post-Independence, DFIs were established mainly to meet the demand for longterm finance by the industrial sector.