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RBI report: Doors could be finally open to large business houses to launch banks

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4 years ago

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RBI report: Doors could be finally open to large business houses to launch banks

The big takeaway from the report of the Reserve Bank of India (RBI)’s internal working group (IWG) on ownership guidelines for private banks is the idea to permit large corporate and industrial houses to promote private banks.

In the past, the RBI has been in large part hesitant to allow large businesses promote banks.

In the preceding rounds, when the RBI had issued non-public financial institution licences, the banking regulator had authorised corporate homes to apply, however grew to become down their programs, and desired monetary establishments which had enjoy in banking transactions.The idea, however, comes with positive riders. According to the IWG recommendations, huge company/industrial houses can be allowed as promoters of banks most effective after important amendments to the Banking Regulation Act, 1949.

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This is geared toward stopping related lending and exposures among the banks and different monetary and non-monetary institution entities and strengthening of the supervisory mechanism for huge conglomerates, inclusive of consolidated supervision.

The different fundamental takeaway from the proposals is to permit huge non-banking monetary companies (NBFCs) to transform into banks. Well-run huge NBFCs, with an asset length of Rs50,000 crore and above, inclusive of the ones which might be owned through a corporate house, can be taken into consideration for conversion into banks, challenge to finishing touch of 10 years of operations and assembly due diligence standards and compliance with extra situations exact on this regard.

This too will assist many corporate homes going for walks NBFCs below their fold to come to be banks in the event that they want to do so.

The final time (2013-14) whilst the RBI invited programs for brand spanking new non-public banks, a bunch of corporates inclusive of Tata Sons; the Aditya Birla Nuvo, a part of the Aditya Birla conglomerate; L&T Finance Holdings, a part of India’s biggest engineering conglomerate Larsen & Toubro; Reliance Capital; and INMACS Management Services Ltd, which presents control consultancy, corporate finance, audit, tax, and legal advisory services, had implemented for permits.

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Only Bandhan and IDFC were given licences.

The IWG group has put lot of emphasis at the Non-operative Financial Holding Company (NOFHC) model. NOFHCs need to stay the desired shape for all new licences to be issued for ordinary banks. However, it need to be obligatory most effective in instances where the character promoters/selling entities/changing entities have other group entities, the institution has said.

While banks certified earlier than 2013 can also additionally pass to an NOFHC shape at their discretion, as soon as the NOFHC shape attains a tax-impartial status, all banks certified earlier than 2013 shall pass to the NOFHC shape inside 5 years from assertion of tax-neutrality, the document said.

Till the NOFHC structure is made feasible and operational, the issues in regards to banks project distinctive sports via subsidiaries/ joint ventures/pals want to be addressed via appropriate regulations. However, banks presently below the NOFHC shape can be allowed to go out from this kind of shape in the event that they do now no longer produce other institution entities of their fold.

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Also Read: BIGG BOSS 14: KAMYA PUNJABI COMPARES KAVITA KAUSHIK TO SIDHARTH SHUKLA, CALLS PAVITRA’S OUTBURST ‘JOKE OF THE SEASON’

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Omar slams Pakistan’s ‘neutral’ probe offer on Pahalgam attack: ‘They didn’t even

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3 hours ago

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April 26, 2025

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Omar slams Pakistan’s ‘neutral’ probe offer on Pahalgam attack: ‘They didn’t even

India has suspended the Indus Waters Treaty, closed the Attari check post, and canceled SAARC visas for Pakistan nationals in response to the Pahalgam attack. Jammu and Kashmir chief minister Omar Abdullah criticized Prime Minister Shehbaz Sharif’s offer for a “neutral” investigation into the Pahalgam terror attack, stating that Pakistan initially denied incident.

India. Shehbaz Sharif said Pakistan was willing to support a “neutral and transparent” investigation into the killing of 26 people in Jammu and Kashmir’s Pahalgam. He emphasized the need for a “grinding halt” to the perpetual blame game and called for Pakistan to tensions participate in any neutral, transparent, and credible investigation. The incident has sparked.

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India has taken several steps against Pakistan following the Pahalgam terror attack that killed 26 people. These include suspending the Indus Waters Treaty, closing the Attari Integrated Check Post, and canceling the SAARC Visa Exemption Scheme (SVES) for Pakistani nationals. The Resistance Front (TRF), a proxy of the Pakistan-based Lashkar-e-Taiba, has claimed.

Responsibility for the attack. Investigations reveal that Adil Ahmed Thoker, a key suspect in rooted in centuries-old cultural growing tensions between India and Pakistan. the Pahalgam attack, received military training in Pakistan before infiltrating India with other terrorists amid speculation about back-channel mediation by countries with close with India Pakistan.

Amid ongoing tensions, Pakistani troops have resumed unprovoked firing along the Line of Control (LoC), and for the second consecutive night, the Pakistani army targeted Indian positions, prompting a retaliatory response from Indian forces. Iran’s foreign minister Seyed Abbas Araghchi offered to “forge greater understanding” between New Delhi and Islamabad.

Araghchi said that Iran stands ready to use its good offices in Islamabad and New Delhi to forge greater understanding at this difficult time. He described India and Pakistan as “brotherly neighbours of Iran, enjoying relations rooted in centuries-old cultural and civilizational ties” and said that they consider them their foremost priority The recent.

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Terrorist attack in Pahalgam, Jammu and Kashmir, has stirred strong reactions across the political spectrum, with former Jammu and Kashmir Chief Minister Omar Abdullah leading the charge in condemning Pakistan’s response to the incident. Pakistan’s offer of a “neutral” investigation into the attack has sparked outrage, with Omar Abdullah accusing.

The neighboring country of failing to take any meaningful action or even offering a proper condemnation of the attack The Pahalgam attack, which occurred in the popular tourist town in the Kashmir Valley, left multiple civilians injured and sent shockwaves through the region. While the perpetrators of the attack are suspected to be militants operating from across.

The border, Pakistan’s reaction has been criticized for its lack of condemnation and accountability. In response to calls for a thorough investigation into the incident, Pakistan offered to conduct a “neutral” probe, suggesting that an impartial body, rather than which occurred in the popular tourist town authorities in either country, should investigate.

Omar Abdullah, known for his sharp and outspoken criticism of Pakistan’s role in Kashmir, was quick to hit back. “They didn’t even condemn the attack. And now, they want to offer a ‘neutral’ investigation?” he said in a strongly worded statement. “If Pakistan is so concerned about what happened in Pahalgam, why don’t they condemn it first? Why don’t they make it.

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Abdullah’s statement reflects the deep frustration felt by many in Jammu and Kashmir, who believe that Pakistan’s offer is nothing more than a distraction from its own involvement in cross-border terrorism. The former Chief Minister further was a deliberate attempt to deflect attention from the fact that the attack.

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