India's central bank, the Reserve bank of India has said that it will soon release a discussion paper on the banking structure in the country. The central bank is determining on the issue of issuing new banking license sin the country.

The Central bank has worked on new rules to issue banking licenses to some parties. These rules are expected to allow firms in other sectors to enter the tightly regulated banking sector of Asia's third largest economy. The banking sector in the country has been traditionally dominated by the state-run banks with private banks like ICICI Bank and HDFC Bank Ltd as well as some foreign

banks making in roads and consolidating their positions in the market.

"My take on that will be told very clearly when the RBI comes out with the paper. It's a paper about the banking structure for India. We are going to bring it out in the next one month where we will address these issues or at least define the issues for discussion," RBI governor D. Subbarao said.

India's banking sector is highly regulator to protect people's savings and to ensure the stability of the financial system in the country. However, the authorities are now looking at financial inclusion as a significant proportion of the Indian citizens do not have a bank account. The government is not aiming to expand the distribution of financial services in the country by allowing new banks to enter the Indian banking sector.

Meanwhile, P. Chidambaram, the union Finance Minister has said that the government is planning to issue some of the new banking licenses before March of 2014 in the country. He said that the entry of new banks, more number of branches and re spatial distribution of location of banks will encourage financial inclusion in the country.