RBI says aware of risks from big firms starting banks

.......RBI will ensure that banks floated by big business houses will be at an arm’s length from their subsidiaries through amendments in the banking regulation Act, Sinha said in Pune at a seminar on India’s banking landscape: The new equations after the entry of industrial houses. Sinha said that allowing big business houses to float commercial banks will help advance the cause of financial inclusion, given their deep pockets. Globally, there are not many cases of industrial houses floating banks, Sinha said, addressing students at the event organized by ‘Mint’ in association with Symbiosis School of Banking Management.........

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