RBI-Kotak stand-off: Review panel for ownership norms among key proposals

The matter is scheduled to come up for hearing at the Bombay High Court on Tuesday.

Amid calls for changes to the contentious ownership norms for private sector lenders, the RBI is likely to look into various proposals including setting up of a review panel and making the regulations more friendly towards Indian control of home-grown banks.

The move is significant as it comes in the wake of the regulator having been dragged to the Bombay High Court by Kotak Mahindra Bank. Its peer Bandhan Bank merged with Gruh Finance, in a deal widely considered to have been driven by the need to comply with the promoter shareholding norms.

“RBI has received at least three proposals and one