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Can't have one-size-fits-all approach to promoter stake: RBI board member

Since 2016, India has witnessed growth of differentiated and specialised banks such as local area banks, small finance banks and payments banks, says Sachin Chaturvedi

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Sachin Chaturvedi, Member, Central Board of Governors, RBI

3 min read Last Updated : Nov 21 2020 | 6:05 AM IST

The Internal Working Group (IWG) of the RBI has recommended a graded approach to reducing promoter stake in banks as a one-size-fits-all approach does not help, says Sachin Chaturvedi, a member of the committee. In an interview with Subhomoy Bhattacharjee, Chaturvedi, who is also a member of the central board of governors of the RBI, talks about the reasoning behind the guidelines. Edited excerpts:

Why did the committee recommend changes in ownership structure in private sector banks? What were you trying to address?

The report has come at a time when on the one hand confidence in the regulatory architecture has been

Topics : RBI Indian Economy

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