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.