A Reserve Bank of India ( RBI ) panel on Friday recommended giving banking licences to large industrial houses, potentially allowing the Aditya Birla group, the Tata group and Reliance Industries Ltd to apply for banking licences. “We welcome the report of the RBI’s internal working group on the ownership guidelines and corporate structure for Indian private sector banks. Mohanty, was set up in June to review ownership guidelines and corporate structure for Indian private sector banks. The panel suggested bringing down the promoter holding to below 26% any time after the first five years of lock-in. The panel also suggested that a non-operative financial holding company (NOFHC) structure should continue as the preferred route for all new banking licences.

Source: Mint November 20, 2020 23:48 UTC