New Delhi, Dec 09: RBI’s recent guidelines allow overlapping lending activities within bank groups, avoiding major restructuring for 12 groups managing 55% of sectoral advances.
These regulations aim to standardize rules across bank entities while maintaining business flexibility. Previously proposed guidelines would have required distinct business operations for each group entity, potentially disrupting banks.
The final version retains important proposals like scale-based regulations for non-banking financial companies and limits on bank shareholding in asset reconstruction companies. Banks must divest from exceeding shareholdings by March 2028, while restrictions on certain loan segments align risk management across entities.
