Banking reforms: The real metrics

Under Shaktikanta Das, RBI has been moving speedily on banking reforms. The most crucial question is, will any of this mean a big difference to the quality and cost of banking services for depositors?

The Reserve Bank of India (RBI) on Friday released a report of its internal working group (IWG) on ownership guidelines and corporate structure of Indian private-sector banks. The report created huge ripples by recommending that “large corporate/industrial houses may be allowed as promoters of banks ...”. The IWG also recommended that well-run large non-banking finance companies (NBFCs), including those which are owned by corporate houses, may get bank licences. The panel also suggested that payment banks could convert into small finance banks after three years of operations.

Earlier, the RBI had allowed urban cooperative banks (UCBs) to convert into small finance