RBI proposes prohibiting banks from bypassing parent bank regulations using group entities.
The Reserve Bank of India (RBI) has proposed a draft circular prohibiting banks from using group entities to bypass regulations meant for the parent bank. This aims to protect core banking functions from risky activities and ensure fairness across banks. Banks will need RBI approval for new group activities and cannot hold over 30% equity in investee companies with their group entities. Comments on the draft are due by November 20.
October 04, 2024
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