RBI welcomes large corporates to promote private banks

The recent report from RBI’s (IWG) stated accessibility for large corporates and industrial houses to promote private banks. However this proposal will prove valid only after amendments are made to the Banking Regulation Act, 1949. Conversation of large NBFCs into banks will be done, with preference given to NBFCs having an asset size of 50,000 crore and above, including those which are owned by a corporate house, may be considered for conversion into banks, subject to completion of 10 years of operations and meeting due diligence criteria.

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