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“Large corporate/industrial houses may be permitted to promote banks only after necessary amendments to the Banking Regulation Act, 1949” — IWG Report on Corporate Ownership of Private Sector Banks.
On November 20, the RBI released the Internal Working Group (IWG) report that reviewed the existing licensing and regulatory guidelines relating to ownership, control, and corporate structure of private sector banks in India. The IWG examined existing guidelines within a larger context of meeting the credit demands of a growing economy; nurturing greater competition in the domestic banking sector through the entry of new players; and scaling up the presence of India’s banks in the world rankings.
The most significant but contentious recommendations are:
