RBI panel new norms for the private banks.
                     RBI panel 
new norms 
for the 
private 
banks
INTRODUCTION
An internal working group set up by the 
RBI on 12 June to review current 
ownership rules and corporate structure 
for Indian private sector banks, 
submitted its report.
Source: www.moneycontrol.com
Recommendation
• Recommendations were issued by the 
panel on the promoter's shareholding in 
private banks, including minimum 
capital requirements for new banks. 
Source: www.moneycontrol.com
Payment banks
• Payment banks may after three years of 
being in operation, be permitted to turn 
into small finance banks (SFBs).
Source: www. Economictimes.com
Increasing the level of 
promoter shareholding
• The cap on promoters’ stake in the long 
run (15 years) may be raised from the 
current level of 15 per cent to 26 per 
cent of the paid-up voting equity share 
capital of the bank.
Source: www.moneycontrol.com
Non-promoter 
shareholding
• With respect to non-promoter 
shareholding, all forms of owners will be 
subject to a uniform limit of 15 per cent 
of the bank's paid-up voting equity 
shares.
Source: www.moneycontrol.com
Non-banking institutions 
could be turned into banks
• When it comes to loans, the top 50 
account for 80% of the market share. 
• Although the RBI and regulators do not 
like any convergence between shadow 
banking and commercial banking in 
general, the two have invariably 
deepened their co-dependence. 
Source: www.businessinsider.com
Corporates may be allowed 
to become bank promoters
• This rule would encourage major 
companies and manufacturing houses to 
become promoters of banks, instead of 
relying on wealthy bankers to step in. 
Source: www.businessinsider.com
NBFCs may be considered 
for bank conversion
• It has also proposed that well-run large 
NBFCs with an asset size of Rs 50,000 
crore and above may be considered for 
bank conversion.
Source: www.businessinsider.com
Non-Operative Financial 
Holding Firm
• The chosen framework for all new 
licences to be given to universal banks 
should appear to be the Non-Operative 
Financial Holding Firm (NOFHC). 
• It can however be obligatory only in 
situations where there are other party 
entities for the individual promoters/ 
entities/converting entities.
Source: www.businessinsider.com
Initial capital 
requirement
• From about 500 crore to about 1,000 
crore for universal banks, and from 
about 200 crore to about 300 crore for 
SFBs, the minimum initial capital 
needed for licencing new banks should 
be increased.
Source: www.businessinsider.com
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