SC: Daughter Doesn't Lose Ties With Natal Family After Marriage, Such Stereotype is Unconstitutional  ||  SC: Limitation For Filing S.34 Appeal Starts From Disposal of S.33 Application, Allowed or Rejected  ||  SC: In Cases of Drug Trade Threats to the Nation, Sovereignty Prevails over Personal Liberty  ||  Delhi HC: Plaintiff Can Obtain a Refund of Court Fees After an IBC Resolution Plan “Settlement”  ||  Ker HC: Default Bail is Available if Final Report is E-Filed After 5 Pm on Last Statutory Day  ||  J&K&L HC: NDPS Act Provisions Extending Investigation Time Apply to Narco-Terror Cases under UAPA  ||  Supreme Court: Courts Have Sometimes Failed Arbitration, With Interference Curing No Disease  ||  Supreme Court: Co-Heir Cannot Sell Other Heirs' Shares as Karta After Intestate Succession  ||  SC: Casual Labourers With Temporary Status are Eligible For Pension Even Without Regularisation  ||  Supreme Court: High Courts Must Record the Nature of Crime and Allegations While Quashing FIRs    

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