RBI internal working group for bank licence to large corporate houses

Non-banking financial firms with an asset size of Rs 50,000 cr or more can aspire for a banking licence

The Reserve Bank of India’s internal working group (IWG) reviewing corporate structure of private sector banks has suggested sweeping changes in bank ownership in its report released on Friday, including allowing large corporate and industrial houses to own banks by amending the Banking Regulation Act, 1949.

The other significant proposal is to allow large non-banking financial companies (NBFCs) with asset size of Rs 50,000 crore and above (including those within the fold of corporate houses), and with a decade’s track record, to convert to banks.

Comments on the IWG’s report are to be submitted by January 15, 2021.

If the