RBI Internal Working Group’s suggestion: Big business houses may soon promote banks

In a significant shift of stance, large corporates and conglomerates could own banks if the suggestions of an internal working group (IWG) constituted by the Reserve Bank of India (RBI) are accepted. The IWG recommends sweeping changes and easier rules that could altogether alter the Indian banking landscape with the presence of many more banks of all hues. For instance, large, well-run non-banking finance companies (NBFCs), with an asset size of Rs 50,000 crore and above could become banks post 10 years of operations once they pass the due exercise. These could be owned by a corporate house so a Bajaj Finance, L&T Financial Holdings or an M&M Financial could make the cut.

News Source:- https://www.financialexpress.com/industry/banking-finance/rbi-internal-working-groups-suggestion-big-business-houses-may-soon-promote-banks/2133147/