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, VPDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
