Reserve Bank of India (RBI) supports the idea that the prospective bank licensee must set up a non-operative financial holding company (NOFHC). RBI said this in a recent clarification on the draft bank license norms.
Further, the central bank said if any individual belonging to the promoter group chooses to become a promoter of the NOFHC, he along with his relatives and along with entities in which he and or his relatives hold not less than 50 per cent of the voting equity shares can hold voting equity shares not exceeding 10 per cent of the total voting equity shares of the NOFHC.
Also, the RBI asked all potential applicants to approach respective financial sector regulator like Securities Exchange Board of India (SEBI), Insurance Regulatory Development Authority (IRDA) to bring their respective group entities regulated by them under the NOFHC structure.
RBI also made it clear that the new aspirants would not be granted any regulatory exemption (or forbearance) in respect of prudential or exposure norms.
Banks need to have 25 per cent of the branches in unbanked rural centres with population up to 9,999. This clause is seen as a major hurdle for big corportes to set up a bank.
The list of unbanked centres with population less than 9,999 can be obtained from the concerned State Level Bankers Committees (SLBCs) and District Consultative Committees (DCCs) at the time of opening branches.
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Home » Bank licensees may set up NOFHC
Bank licensees may set up NOFHC
Infrastructure Finance
June 5, 2013June 5, 2013

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