RBI keeps on hold suggestion to give bank licence to big businesses

The RBI has so far issued eight bank licensing guidelines to harmonise the rules and regulations

The Reserve Bank of India (RBI) on Friday said it was still examining if industrial houses should be allowed to run banks as recommended by an internal working group (IWG), but accepted its suggestion to increase the cap on promoters’ stake in banks to 26 per cent from the current 15 per cent.

The central bank accepted 21 of the 33 recommendations suggested by the IWG, headed by Prasanna Kumar Mohanty, director, central board of the RBI.

The group, constituted on June 12 last year, had suggested in its November 20 report that large corporate or industrial houses be allowed in banking