RBI panel suggests hike in promoter stake cap to 26%, non-promoter to 15%

These are among the key recommendations made by the internal committee of the RBI, set up to review the extant ownership guidelines and corporate structure for private banks in the country.

The cap on promoters' stake in private banks has been proposed to be raised to 26 per cent from 15 per cent over a period of 15 years. For non-promoter shareholding, a uniform cap of 15 per cent has been proposed – up from 10 per cent. Promoters can choose to bring down the holding to even below 26 per cent at any time after a lock-in period of five years. And, intermediate sub-targets between 5 and 15 years may not be required, but at the time of issuing licences, promoters may submit a dilution schedule to the Reserve Bank