RBI accepts 21 of 33 working group’s recos on private banks

rbi accepts 21 of 33 working groups recos on private banks

Sumary of RBI accepts 21 of 33 working group’s recos on private banks:

  • 1,000 crores and permitted promoters to own as much as 26 percent by the promoters comforting billionaire Uday Kotak to retain control over his bank.
  • Industrial houses such as Tatas and Birlas which run large Non-Banking Finance Companies face a double whammy as the central bank has declared it would tighten the rules governing big NBFCs to be as stringent as it is for banks.
  • “The cap on promoters’ stake in long run of 15 years may be raised from the current levels of 15 per cent to 26 per cent of the paid-up voting equity share capital of the bank,” the RBI said.
  • Though, promoters who have already diluted their holdings to below 26 per cent, will not be permitted to raise it to 26 per cent of the paid-up voting equity share capital of the bank.
  • The regulator added that the promoters, can choose to bring down holding to below 26 per cent, any time after the initial lock- in period of five years.

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