Experts are of a view that the central bank of the country, The Reserve Bank of India (RBI) should give its decision of not granting licenses to players who have exposure to realty sector a second thought.

For the records, the central bank has passed on this information in the discussion paper which indicated that the groups that have exposure to the real estate sector may not be able to obtain the about to be issued banking licenses.

But as there may be a lot of protest and unhappiness regarding this decision, it is expected that the RBI will have to make strict norms in case of issuing new banking applicants with exposure to the real estate sector.

The three deputy governors of the RBI - Usha Thorat, Subir Gokarn and KC Chakraborty met the top officials of the financial services category on Thursday to have a discussion on the same and have collected their feedback.

An official who was at the meeting has said that close to three fourth of the meeting went in discussing the fact that whether RBI should allow realty groups to enter into the banking industry.