<h1>In principle approval for banking licences allows applicants to seek full licence after meeting regulatory conditions.</h1> RBI granted 'in principle' approval to two applicants to set up banks under the Guidelines, subject to meeting stipulated regulatory and procedural conditions within the validity period; on RBI's satisfaction they may be considered for a licence to commence banking business under Section 22(1) of the Banking Regulation Act, 1949, and until a regular licence is issued they are barred from doing banking business.