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

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

Don't miss the most important news and views of the day. Get them on our Telegram channel

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

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to