{"id":663,"date":"2020-11-24T05:17:02","date_gmt":"2020-11-24T05:17:02","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=663"},"modified":"2022-01-31T13:36:16","modified_gmt":"2022-01-31T13:36:16","slug":"has-rbi-just-stipulated-the-roadmap-for-3rd-nationalization-of-banks","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/has-rbi-just-stipulated-the-roadmap-for-3rd-nationalization-of-banks\/","title":{"rendered":"Has RBI just stipulated the roadmap for 3rd nationalization of banks?"},"content":{"rendered":"
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In order to spur the growth in the operations, manufacturing\nand services activities and concrete the banking system, Indian administrative\nagencies take a lot of initiatives to address the future plans. As world\nagencies has started discounting Indian economy as a nation of 21st<\/sup>\ncentury that may be a dark horse in terms of exports generations, ease of doing\nbusiness, multiplication of financial transactions and mammoth of technology,\nReserve Bank of India has come forward with a roadmap to impulse banking\nsystem, which will act as a backbone to support the economic activities. On\nJune 12, 2020, RBI had constituted an Internal Working Group (IWG) to review\nthe bye-laws relating to ownership guidelines and autonomous corporate\nstructure for Indian private sector banks.<\/p>\n\n\n\n

Raising stake ceiling\nfrom 15% to 26%<\/strong><\/p>\n\n\n\n

Much long-awaited move for increasing the promoter\u2019s stake from a ceiling of 15%, which has narrowed the voting rights of Uday Kotak from Kotak Mahindra Bank despite having 26% stake in the shareholding structure has been addressed significantly. The think tank committee has recommended for raising promoters stake to 26% from 15% stake stated earlier, which will not force the promoters for further dilution and retaining their controlling rights. This will also advocate the conglomerates to strengthen their chain of command and supervisory mechanism. If things get papered swiftly, Indian corporate houses will be fortunate to enter into commercial banking after 2nd<\/sup> nationalization of bank in 1980.<\/p>\n\n\n\n

Must Read: Opportunity is standing at the doorstep of real estate sector! Grab it.<\/a><\/p>\n\n\n\n

New players in\nCommercial Banking club<\/strong><\/p>\n\n\n\n

Next major amendment which has made by International Work\nGroup of Reserve Bank of India is the inculcation of NBFC\u2019s into the major\nbanking group. NBFC\u2019s having an asset size of Rs. 50,000 crores and operating\nfrom more than 10 years will be given green signal after a due diligence and\ncompliance with additional stipulations specified. Large NBFC\u2019s backed by\ncorporate houses such as: M&M Finance, Bajaj Finance, Aditya Birla Capital,\nL&T Finance, Shriram Finance and Muthoot Finance will get a chance to\ncompete with the stabled-historic private sector banks and generate cheaper\ndeposits through CASA facility.<\/p>\n\n\n\n

Enhancement in\nCapital for Banking License<\/strong><\/p>\n\n\n\n

As per the specifications under the recommended report from\nInternal Working Group of RBI, the minimum capital requirement for commercial\nbanks could be increased from Rs. 500 crores to Rs. 1,000 crores. In case of\nSmall Finance Banks, the initial capital requirement could be increased from\nRs. 200 crores from Rs. 300 crores. <\/p>\n\n\n\n

Other\nrecommendations:<\/strong><\/p>\n\n\n\n

Payment Banks are required to have a track record of three years who are planning to turn themselves into Small Finance Bank.<\/p>\n\n\n\n

Also Read: Why Morgan Stanley has revised the target of Sensex to 50,000 by Dec 21<\/a><\/p>\n

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In order to spur the growth in the operations, manufacturing and services activities and concrete the banking system, Indian administrative agencies take a lot of […] Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":664,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180,48],"tags":[],"class_list":["post-663","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-economy"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/663","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=663"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/663\/revisions"}],"predecessor-version":[{"id":665,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/663\/revisions\/665"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/664"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}