RBI stance signals easier framework for setting up banks, say experts

The Reserve Bank of India’s (RBI’s) position on promoter holding and redressal of issues on holding companies will pave the way for a more conducive regulatory framework to set up banks, experts said.

However, the regulator’s silence on the issue of corporate ownership evoked “surprise”.

The RBI is yet to clearly spell out its position on conversion of non-banking finance companies into banks, he said.

Ashvin Parekh, managing partner, Ashvin Parekh Advisory Services (APAS), said, “To my mind, 26 per cent is a good benchmark, as (the issue of) fear about promoters losing control has been dealt with. The other stakeholders can’t pass