<h1>RBI Grants 'In-Principle' Approval to IDFC and Bandhan for New Private Banks; 18-Month Compliance Window Set.</h1> The Reserve Bank of India (RBI) has granted 'in-principle' approval to two entities, IDFC Limited and Bandhan Financial Services Private Limited, to establish banks under the guidelines for new bank licensing in the private sector. These approvals, recommended by the High Level Advisory Committee, are valid for 18 months, during which the entities must meet specific requirements before being granted a full banking license. The RBI also considered a separate application from the Department of Posts. This conservative approach aims to enhance banking access and will inform future revisions to the licensing process, potentially allowing more frequent and varied banking licenses.