State Bank of India, the biggest bank in the country, is considering a proposal to close about 30% of its nearly 24,000 branches to remain competitive as advised by global management consultant McKinsey. The bank added 451 branches at the end of the last financial year. SBI is currently gearing up for the merger of five associate banks and the scope for cost rationalization is expected to increase further.

RBI had announced new rules and regulations where it will be easy for getting a banking license for anyone. Any eligible banking aspirant, individual or entity, can walk to the central bank with an application to start a full-service bank at any point. Any Indian person who has at least 10 years of experience at seniority level in banking sector can become the universal bank promoter. Also he should have company or group assets of minimum Rs 5000 crore or more and other than this he should not have more than 40 percent stakes in non financial business. RBI has excluded the large industrial houses for the licensing though they can invest into banks upto 10 percent. The board of the bank should have a majority of independent directors. Non-Operative Financial Holding Company (NOFHC) has been made non-mandatory in case promoters are individuals or standalone promoting entities which do not have other group entities. New banks have to be listed in the stock market within 6 years. Also 74 percent of the FDI exposure of that time will be applied with current guidelines.