Officials hope tough regulations could eventually let NBFCs into banking

RBI accepted 21 of 33 recommendations of internal working group, the key being allowing promoters to hold 26% in the bank they floated. RBI did not mention corporate and NBFC issues in its guidelines

Photo: Reuters
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Photo: Reuters

Subrata PandaAnup Roy Mumbai
The Reserve Bank of India’s (RBI) decision to stay away from taking an immediate call on corporate entry into banking, and letting large non-bank financial companies (NBFC) convert into banks may have disappointed some, but was not entirely unexpected.  

Rather, some of the large NBFCs are hoping that the scale-based regulation on NBFCs, which brings large para-banking units at par with banks gradually, would be the first step towards letting them graduate into full-scale commercial banks.

In its ownership guidelines and corporate structure for private banks, released on Friday, the RBI kept silent on two critical recommendations of an internal

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First Published: Nov 28 2021 | 1:58 PM IST

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