Mumbai, Aug 29: After discussing it for over an year, the Reserve Bank today came out with draft guidelines for allowing business houses with successful track record and a minimum capital of Rs 500 crore to set up commercial banks.
The draft, on which the RBI has invited comments from stakeholders till October 30, also spelt out the framework for converting non-banking financial companies into banks.
As per the draft guidelines, the minimum capital requirement for a company to set up a bank has been pegged at Rs 500 crore, up from existing Rs 300 crore.
Although the move to allow corporates to set up banks is welcomed by India Inc, RBI Governor D Subbarao had expressed concerns by saying the entry of business houses into the banking space could open up opportunities for “self-dealing”.
“...if a corporate has an interest in a bank as a promoter or a shareholder, but has no position on the board, then there is no prohibition on the bank lending to the corporate. This opens up opportunities for self-dealing,” he had said earlier this month.
From: http://ping.fm/lTJ1x
Popular Posts
-
Even as social activist Anna Hazare yoga guru brought Mahatma Gandhiji’s satyagraha into limelight, Janata Dal (U) president Sharad Yadav to...
-
As the 125th edition of Wimbledon heads into its second week, all of the principal story lines are still there to be followed. From: http://...
-
Director Michael Bay plans a fresh take on shape-shifting robots with the fourth installment in his “Transformers” franchise. From: http://p...
-
The four astronauts assigned to NASA's last space shuttle flight can't seem to escape all the fuss and hubbub. With just eight days ...
-
Shooter Gagan Narang Conferred Khel Ratna From: http://ping.fm/BOTms
-
Gujarat CM Narendra Modi Meets Sri Sri Ravi Shankar In Anand
-
Belgium’s defense minister is proposing to withdraw half of the nation’s 580 troops from Afghanistan by next year. From: http://ping.fm/vM3X1
-
Pakistan's banned cricketer Mohammad Amir returned home Sunday after serving his jail sentence for spot-fixing in London. From: http://p...
-
Down by a goal, Churchill Brothers fought back through a brace by Henri Arnaud Autchouet to score a convincing 3-2 win over Pailan Arrows an...
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment