TIL Desk/Business/New Delhi/ An internal working group set up by the RBI has proposed to raise the cap on promoters’ stake in private banks from the current 15 per cent to 26 per cent in 15 years.
The group has also recommended that large corporate or industrial houses may be allowed as promoters of banks only after amendments to the Banking Regulation Act and strengthening of the supervisory mechanism for conglomerates, including consolidated supervision.
The Reserve Bank of India had constituted the internal working group (IWG) on June 12, 2020, to review extant ownership guidelines and corporate structure for Indian private sector banks. The central bank released the groups’ report on Friday.
