RBI releases recommendations of IWG on ownership guidelines for pvt banks

RBI says 21 of total 33 recommendations of the Internal Working Group have been accepted

Reserve Bank of India on Friday released recommendations of the Internal Working Group to review extant ownership guidelines and corporate structure for Indian private sector banks

An Internal Working Group (IWG) was constituted by Reserve Bank on June 12, 2020 to review the extant guidelines on ownership and corporate structure for Indian private sector banks. The report submitted by the IWG was placed on the RBI website on November 20, 2020 inviting comments of stakeholders and members of the public by January 15, 2021.

"The IWG had made a total of 33 recommendations. After examining the comments and suggestions received from the stakeholders and members of the public, it has been decided to accept 21 recommendations (some with partial modifications, where considered necessary), as listed in Annex. The remaining recommendations are under examination," said RBI on Friday.

"The consequential amendments in instructions/ circulars/ master directions/ licensing guidelines following the acceptance of the recommendations (with or without modifications) is being carried out and will be notified in due course. However, during the interregnum, all stakeholders may be guided by these decisions," added RBI.