On Friday, the Internal Working Group released recommendations to review extant ownership guidelines and corporate structure for Indian banks.
An Internal Working Group, IWG was formed by Reserve Bank on June 12, 2020 to review the extant guidelines on ownership and corporate structure for Indian. The report submitted by the IWG was placed on the RBI website on November 20, 2020 and invited comments from stakeholders and members of the public by January 15, 2021.
The IWG had made 33 recommendations. After looking at the comments and suggestions from the stakeholders and members of the public, it decided to accept 21 recommendations with partial modifications that are considered necessary as listed in Annex. The rest of the recommendations are being examined, according to the RBI on Friday.
The amendments to instructions circulars master directions licensing guidelines will be notified in due course, after the approval of the recommendations with or without modifications. All stakeholders can be guided by these decisions during the interregnum, according to the RBI.