The Reserve Bank of India had constituted an Internal Working Group (IWG) in June 2020 to review the extant ownership guidelines and corporate structure for Indian private sector banks. Refer to the…

Question

The Reserve Bank of India had constituted an Internal Working Group (IWG) in June 2020 to review the extant ownership guidelines and corporate structure for Indian private sector banks. Refer to the statements given below and identify which of the following is/are the recommendation(s) of this IWG, as per its report submitted in Nov 2020. i. Large corporate/industrial houses may be allowed as promoters of banks only after necessary amendments to the Banking Regulation Act, 1949 and strengthening of the supervisory mechanism for large conglomerates, including consolidated supervision. ii. For Payments Banks intending to convert to a Small Finance Bank, track record of 3 years of experience as Payments Bank may be considered as sufficient. iii. The cap on promoters’ stake in the long run (15 years) may be raised from the current level of 15 percent to 26 percent of the paid-up voting equity share capital of the bank.

Testwala · Accepted Answer

C. All of the above

Answer: C. C. All of the above

Answer: C. C. All of the above