(I) Resident individuals and professionals having 10 years of experience in banking and finance at a senior level are also eligible to promote universal banks;
(II) Large industrial houses are excluded as eligible entities but are permitted to invest in the banks up to 10 per cent;
(III) Non-Operative Financial Holding Company (NOFHC) has been made non-mandatory in case of promoters being individuals or standalone promoting/converting entities who/which do not have other group entities;
(IV) Not less than 51 per cent of the total paid-up equity capital of the NOFHC shall be owned by the promoter/promoter group, instead being wholly owned by the promoter group; and
(V) Existing specialised activities have been permitted to be continued from a separate entity proposed to be held under the NOFHC subject to prior approval from the Reserve Bank and subject to it being ensured that similar activities are not conducted through the bank as well
Key features of the guidelines:
1. Eligible Promoters
2. ‘Fit and Proper’ criteria
3. Corporate structure
4. Minimum capital requirement
5. Foreign shareholding in the bank
6. Corporate governance, prudential and exposure norms
7. Business plan for the bank
8. Other conditions
9. Procedure for application
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