The RBI committee has proposed a new look at the domestic banking industry. Under this proposal, non-banking finance companies and major payment banks will be approved to act as lenders. This means that they will be able to work as banks. An investment banker kept his identity a secret and said that Bajaj Group, Piramal Group and Reliance Industries are in a better position to enter the banking sector.
The RBI committee has proposed that banking regulations should be reformed so that large industrial houses can act as bank promoters. This means that they can have a large stake in the bank. The special thing is that RBI was against any such major stake in the bank before this.
An independent financial services advisor says that the decision to approve corporates in banking should be taken cautiously. Analysts say that this step is being taken to ensure maximum capital flow in the banking sector. Apart from this, competition in the banking sector will also increase. However, everyone believes that this will cause problems in monitoring.
The committee to open up the banking sector to corporate has also suggested maximum shareholding in a bank. Earlier in June, a committee was formed to review the corporate structure of private sector banks of the country and their ownership guidelines. This committee proposed that any investor who is not yet a stakeholder in a bank or a non-promoter shareholder should have a maximum shareholding of 15 per cent. Abha RBI Committee has proposed that promoters can hold up to 26 per cent stake in private bank instead of 15 per cent of 15 years.
The committee has also proposed to convert the shadow bank into lenders. According to the proposal, any non-banking financial company (NBFC) or shadow bank with an asset of 50 thousand crores ($ 675 million) or more can be converted into a bank. However, for this, they will have to work as NBFCs or shadow banks for 10 years. RBI has invited comments on this report and it can be submitted by 15 January next year.