India’s largest business group, Tata, has withdrawn its application for a banking license, considering its current financial services business strategy, reported the BBC.
Tata group that produces across a broad range of sectors, including cars and steel manufacturing, and comments that it hopes to enter the banking space at an "appropriate time in the future".
Following the Reserve Bank of India’s announcement of issuing new banking licenses, the central bank announced the receipt of 26 banking license applications as of July this year, including that of Tata.
With Tata out of the race, 25 applicants remain, including Indian business giants Aditya Birla Group, the Bajaj Group, and Reliance Group.
The Reserve Bank of India’s offer of new banking licenses is the first in nearly a decade, under the helm of the central bank’s new governor Raghuram Rajan.
These measures are part of a host of new policies the country plans on implementing, to not only propel economic growth, but also help provide services to a large proportion of India’s rural population currently under-banked.