India is considering allowing newprivate sector banks, including by industrial houses, and aroadmap for the same could be announced in the annual UnionBudget to be presented later this month.

While the formal and final guidelines would be announcedby RBI on who should be allowed to set up new banks and whatshould be the terms and conditions for them, a roadmap on thesubject could be announced in the Budget speech on February 28by Finance Minister Pranab Mukherjee, sources added.

In his Budget speech last year, Mukherjee had said thatthere was a need for extending the geographic coverage ofbanks and improving access to banking services.

The Reserve Bank of India (RBI) is close to finalisingthe guidelines for entry of new banks in the private sector,based on its consultations with the government and variousstakeholders, as also the feedback to its August 2010discussion paper on the issue, sources in the know said.