RBI has released draft guidelines for on-tap licensing of universal banks in the private sector (‘Draft Guidelines’) on May 5, 2016 (for comments and suggestions) which will allow applications for bank licenses to be submitted to RBI at any point in time. While the Draft Guidelines follow the earlier 2013 guidelines on bank licensing in many respects, notable changes include: (i) a new category of eligible promoters being resident individuals/ professionals having ten years of experience in banking and finance; (ii) large industrial houses being barred from having a controlling interest in new banks; and (iii) relaxation of the requirement of establishing a bank through a non-operative financial holding company where the applicant is an individual or stand-alone entity not having group entities.