RBI reviewing regulation for governing non-core business of banks

The modifications in relation to banks' non-core business could be made by amending the Banking Regulation Act

The Reserve Bank of India (RBI) intends to change the regulatory framework governing non-banking activities carried out by banks and their group entities such as insurance and asset management, reported the Financial Express, citing sources. According to the central bank, the moveis aimed at eliminating any regulatory arbitrage inherent in the current system.

The modifications could be made by amending the Banking Regulation Act. 

According to sources, an internal panel has been set up by the RBI for this purpose. The panel has recommended a clearer and more explicit segregation of core and non-core businesses of banks and group entities. 

“The