P K Mohanty Committee constituted by RBI

P K Mohanty Committee constituted by RBI

Part of: GS-Prelims and GS-III – Economy

In News:

• The RBI has constituted a five-member Internal Working Group to review present ownership guidelines and corporate structure for Indian Private Sector Banks.

Key takeaways 

• RBI Central Board Director P K Mohanty will head the committee. 
• It will submit its report by 30th September, 2020.
• Terms of Reference of the Committee are:
  • To review the present licensing guidelines and regulations relating to ownership and control in Indian private sector banks and suggest appropriate norms. 
  • To examine and review the eligibility criteria for individuals/ entities to apply for banking licenses. 
  • To study the current regulations on holding of financial subsidiaries through non-operative financial holding company (NOFHC) and suggest the manner of migrating all banks to a uniform regulation in the matter. 
  • To examine the norms for promoter shareholding at the initial/licensing stage and subsequently, along with the timelines for dilution of the shareholding.