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.
