RBI working group suggests permitting large NBFCs to convert into bank3 min read 20 Nov 2020, 04:09 PM IST
RBI had constituted an internal working group on 12 June to review extant ownership guidelines and corporate structure for Indian private sector banks
The internal working group of Reserve Bank of India (RBI) suggested that large Non-Banking Financial Company (NBFCs) can convert into banks if they fulfill certain criteria. "Well run large NBFCs, with an asset size of ₹50,000 crore and above, including those which are owned by a corporate house, may be considered for conversion into banks subject to completion of 10 years of operations and meeting due diligence criteria and compliance with additional conditions specified in this regard," the central bank panel recommended.
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