RBI’s IWG Recommendations to Review Extant Ownership Guidelines and Corporate Structure for Indian Private Sector Banks
On June 12, 2020, the Reserve Bank of India established an Internal Working Group (IWG) to evaluate the existing criteria on ownership and corporate structure for Indian private sector banks. On November 20, 2020, the IWG’s report was posted on the RBI website, encouraging stakeholders and members of the public to submit comments by January 15, 2021.
The IWG offered 33 suggestions in total. After reviewing the comments and ideas received from stakeholders and members of the public, it was agreed to accept 21 of the proposals stated in Annex (some with minor changes where necessary). The remaining suggestions are being looked upon.
Following the adoption of the recommendations (with or without revisions), the necessary changes to instructions, circulars, master directions, and licencing rules are being implemented and will be announced as soon as possible. During the interim, however, these decisions may serve as a guide for all stakeholders.
List of Complete Recommendations of the Internal Working Group can be downloaded from below link: