Former RBI governor Bimal Jalan headed committee will finalise the candidates who will be eligible to run a bank. The committee will also have former ICICI Bank executive director Nachiket Mor, former Securities and Exchange Board of India chairman CB Bhave and former Reserve Bank of India deputy governor Usha Thorat.
The committee will scrutinise applications for new bank licences, which are expected to be awarded by January. There are 26 applicants from the public and private sectors for bank licences, including Tata Sons, India's biggest business group, and firms controlled by billionaires Anil Ambani and Kumar Mangalam Birla.
Among public sector units, India Post and IFCI have submitted applications. Microfinance institutions such as Bandhan Financial and Janalakshmi Financial, too, have expressed interest.