Reserve Bank of India Governor Raghuram Rajan, on Thursday, said the central bank had sought the Election Commission’s nod over the issue of grant of new bank licence as a matter of caution.
“I think (it) is to make sure that any such announcements are not tinged by uncertainty. That’s why it is important to ask the Election Commission whether this meets with the code of conduct.
“Think of it as caution, you might call the caution excessive but it is important to follow the process,” he told reporters here when asked about the reasons for approaching the Election Commission before issuing new bank licences.
When asked whether new bank licences will be issued on March 31, Dr. Rajan said, “I don’t know.”