The Reserve Bank of India’s working group has recommended that large industrial houses be allowed to be bank promoters, meaning they can take significant stakes, something the central bank has strongly objected to in the past.
The working group committee, which was formed in June to review ownership guidelines and the corporate structure of Indian private sector banks, released its report on Friday, November 20.
“Large corporate/industrial houses may be allowed as promoters of banks only after necessary amendments to the Banking Regulation Act, 1949,” the committee suggested.