RBI restricting banks from raising stakes in insurance firms: Report

The RBI wants banks to focus on their main areas of business instead of locking away capital in non-core sectors

India's central bank wants banks to limit ownership stakes in capital intensive insurance companies at a maximum 20 per cent, less than half of what the current regulations permit, three sources with knowledge of the discussions told Reuters.

Reserve Bank of India (RBI) rules allow banks to hold up to 50 per cent stakes in insurers and on a selective basis equity holdings can be higher but must eventually be brought down within a certain period.

The sources, who asked not to be named as the discussions are private, however said the central bank in 2019 unofficially advised banks seeking