No plans to allow business houses to promote banks: RBI Governor Shaktikanta Das

Mumbai, July 19

Governor Shaktikanta Das on Friday said the RBI does not have any plan to allow business houses to promote banks at present. Allowing corporate houses to promote banks exposes one to conflict of interest risks and related-party transactions, Das said here.

“At this point, there is no thinking in that direction,” Das said, replying to a specific query on whether there is any consideration to allow business houses. The RBI had disqualified a long list of conglomerates from floating a lender in the last round of licensing around a decade ago.

The issue was revived again in 2020, with a RBI working group supporting it, given the potential to get the capital for helping meet the country’s growth aspirations.