<h1>RBI Issues New Private Bank Licensing Guidelines: Promoters, NOFHC, Foreign Shareholding, and Rural Branch Requirements Explained.</h1> The Reserve Bank of India (RBI) has issued guidelines for licensing new banks in the private sector. Eligible promoters include private and public sector entities and Non-Banking Financial Companies (NBFCs), which must establish a wholly-owned Non-Operative Financial Holding Company (NOFHC). Promoters must have a sound track record of at least ten years. The NOFHC must hold a minimum of 40% of the bank's equity for five years, reducing to 15% within 12 years. Foreign shareholding is capped at 49% for the first five years. Banks must open 25% of branches in rural areas and meet priority sector lending targets.