Commercial banks may not need RBI approval for floating subsidiaries

Regulator to emphasise on non-duplication of businesses

For commercial banks to float subsidiaries, approval from the Reserve Bank of India (RBI) may not remain mandatory, according to highly placed sources. 

However, if the subsidiary is for insurance or asset management, the bank must take approval from the respective regulators. The central bank is  considering the matter.

 

The move, sources said,  is to make banks’ doing  business easier. The regulator has been streamlining regulations for the financial  sector to enhance ease of doing business, and this move is a step in that direction. 

Section 6 of the Banking Regulation