India election commission allows cbank to announce new bank licences

MUMBAI, April 1 Tue Apr 1, 2014 8:08am EDT

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MUMBAI, April 1 (Reuters) - India's election commission on Tuesday allowed the Reserve Bank of India to announce new bank licences even ahead of general 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.

"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. (Reporting by Suvashree Dey Choudhury; Editing by Rafael Nam)

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