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Jun 13, 2020
2:06PM

RBI sets up panel to review ownership, corporate structure of Private sector banks

PTI ( FILE PIC )
The Reserve Bank of India has constituted a five-member Internal Working Group to review the guidelines related to ownership, governance and corporate structure of private sector banks. In a press release, RBI informed that RBI Central Board Director P K Mohanty will head the committee, which will submit its report by 30th September, 2020.
 
The panel will also examine norms for promoter shareholding at the initial/licensing stage and subsequently, along with the timelines for dilution of the shareholding. RBI said, it is necessary to align regulations to meet the requirements of a dynamic banking landscape as macro-economic, financial market and technological developments continue to influence the future of banking.
 
The panel has also been asked to examine and review the eligibility criteria for individuals or entities to apply for banking licence and make recommendations on all related issues.

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