Uday Phadke of Mahindra & Mahindra and N Sivaraman of Larsen & Toubro talk about the impact it will have on their respective companies while Abizer Diwanji of KPMG gives his perspective on this development.
The much awaited draft rules from the Reserve Bank of India (RBI) that will govern the issue of new bank licences is out. Most of the rules like the minimum capital requirement of Rs 500 crore are along expected lines. But there were some shockers as well. No group of a company with more than 10% of revenues coming from broking or real estate will be eligible.
What's worse, the central bank says promoter groups who want to set up banks must have diversified ownership, professional management, adequate corporate governance and a 10-year successful track record. This, while excluding some young aspirants also makes the entire choice discretionary.RBI releases draft rules for bank licences for corporates
Uday Phadke, President Financial Services, Mahindra & Mahindra and N Sivaraman, VP Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.