Doubts over financial viability of small and payment banks could keep away some players from the second round of bank licensing. The central bank's proposal to ring-fence new banking entities from any financial or non-financial services of the promoter could also play a spoilsport. The Reserve Bank of India on July 18 kicked off the differentiated banking licence regime by proposing, in its draft guidelines on small banks and payments banks, to allow the likes of super market chain D-Mart, telephone company Idea Cellular and non-banking financial companies such as gold loan specialist Muthoot Finance and Shriram Capital to apply for banking licence.

Source - http://economictimes.indiatimes.com