Jul 24, 2013, 08.08 AM | Source: PTI
Aditya Birla Group's Kumar Mangalam Birla resigned from the board of the Reserve Bank of India; weeks after his group firm applied for a banking license from the RBI.
Birla was a nominated as a member of the Directors of the Central Board of the RBI in 2006. His group firm Aditya Birla Nuvo is among 26 entities that have applied for a bank licence. The last date for applying for a bank licence expired on July 1.
With Birla continued to be on the Board of RBI even after his group firm applied for a licence. CPI had recently raised objections, saying there is conflict of interest as he is a member of the RBI board.
RBI Governor D Subbarao had responded by saying the central bank would look into the issue. The Reserve Bank is expected to grant new licences by March next year.
India has 26 public sector banks, 22 private sector banks and 56 regional rural banks.