Gold loan company Muthoot Finance Ltd today filed an application with the Reserve Bank of India for a banking licence.
Confirming that the non-banking finance company has filed its application, K.P.Padmakumar, Executive Director, said that Muthoot Finance would set up a non-operative financial holding company to conform to the RBI guidelines.
While MFL would hold 90 per cent stake in the holding company, the balance 10 per cent will be held by the promoters.
Padmakumar said that Muthoot Finance knew the "rural heartland " very well and that most of its 4400 branches were located in Tier 2 and Tier 3 cities.
"Our application should be eminently considerable given our existing focus on rural india", Padmakumar said.
He also said that Muthoot Finance had an 18-month period to change its legal structure in line with the RBI requirements, if an in-inprinciple approval is granted by the central bank for the banking foray.