SC: Suit Alleging Coercion or Undue Influence Cannot be Rejected under Order VII Rule 11 CPC  ||  Cal HC: Once ED Attachment is Confirmed, Challenge Becomes Academic; PMLA Remedy Must be Pursued  ||  MP HC: Pen-Drive Evidence Cannot be Introduced At a Late Trial Stage Without Proof or Relevance  ||  Calcutta HC: Employee Can't be Stopped From Joining Rival Post-Resignation; Trade Secrets Protected  ||  Calcutta HC: Banks Must Provide Forensic Audit Report Before Calling an Account Fraudulent  ||  Del HC: Woman Cannot Demand Re-Entry to Abandoned Matrimonial Home if Alternate Accommodation Exists  ||  Calcutta HC: Land Acquisition For Industrial Park is Public Purpose; Leasing to Industry is Valid  ||  Patna HC: PwD Recruitment Must Comply With RPwD Act; Executive Resolutions Cannot Override the Law  ||  Madras HC: Individuals Facing Criminal Trial Must Get Court Permission Even to Renew Passports  ||  Calcutta HC: Demolition Orders Cannot be Challenged under Article 226 if a Statutory Appeal Exists    

RBI releases Guidelines for 'on tap' Licensing of Universal Banks in the Private Sector- (Reserve Bank of India) (01 Aug 2016)

MANU/RPRL/0189/2016

Banking

The Reserve Bank of India released on its website, "Guidelines for 'on tap' Licensing of Universal Banks in the Private Sector". Key aspects of the Guidelines include: (i) resident individuals and professionals having 10 years of experience in banking and finance at a senior level are also eligible to promote universal banks; (ii) large industrial houses are excluded as eligible entities but are permitted to invest in the banks up to 10 per cent; (iii) Non-Operative Financial Holding Company (NOFHC) has been made non-mandatory in case of promoters being individuals or standalone promoting/converting entities who/which do not have other group entities; (iv) Not less than 51 per cent of the total paid-up equity capital of the NOFHC shall be owned by the promoter/promoter group, instead being wholly owned by the promoter group; and (v) Existing specialised activities have been permitted to be continued from a separate entity proposed to be held under the NOFHC subject to prior approval from the Reserve Bank and subject to it being ensured that similar activities are not conducted through the bank as well.

Recognising the need for having an explicit policy on banking structure in India in line with the recommendations of the Narasimham Committee, Raghuram G. Rajan Committee and other viewpoints, the Reserve Bank came out with a policy discussion paper on Banking Structure in India - The Way Forward on August 27, 2013. After a thorough examination of the pros and cons, the discussion paper made out a case for reviewing the current 'Stop and Go' licensing policy and for considering a 'continuous authorisation' policy on the grounds that such a policy would increase the level of competition and bring new ideas into the system. The feedback on the discussion paper broadly endorsed the proposal of continuous authorisation with adequate safeguards.

Tags : UNIVERSAL BANKS   LICENSING   GUIDELINES  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved