Reserve Bank of India (RBI) in June 2020 constituted an Internal Working Group (IWG) to review extant ownership guidelines and corporate structure for Indian private sector banks and other related issues. The IWG submitted its report on 20 November 2020 which instantly became a criticised subject from several corners. Out of the several issues, one vital and most contentious issue that springs out from the recommendations of IWG is whether large corporate /industrial houses may be allowed as promoters of banks in India. This is discussed herein.
Publication: BW LegalWorld