4 min read.Updated: 22 Nov 2020, 08:25 PM ISTRajrishi Singhal
RBI’s disposition towards foreign banks and its norms on stakes held overseas remain a little too inscrutable
The Reserve Bank of India (RBI), as the Indian financial sector’s custodian, initiated a two-pronged action on 17 November: a moratorium on privately-owned Lakshmi Vilas Bank (LVB) and, simultaneously, its amalgamation with DBS Bank India Ltd (DBIL), a wholly-owned subsidiary in India of the Singapore government’s DBS Bank. Three days later, an internal working group (IWG) of the central bank released a report on ownership rules and the corporate structure of Indian private banks. There are strange overlaps between the regulatory action and the subsequent report.