RBI does not currently admit large corporations and commercial buildings to the bank. India is not ready for a mandate to require oversight and regulation of the use of commercial sectors in this key sector.
Even though we need more stringent rules, we also need entrepreneurs to respect the rules. At the risk of painting all advertisers with the same brush, one is compelled to say that India Inc does not enforce the belief that it will support the required behavior in the banking sector.
In general, companies in India do not worry themselves about good business governance and therefore, it is a bit confusing to think that they will manage a lot of government money.
While most private banks are no doubt good, the landscape has been destroyed by fraud, and the bankruptcy of lenders like Yes Bank and others should still be a lesson to us. A good portion of bankrupt loans of Rs 20-25 lakh crore, in the last decade, can be attributed to default on purpose.
In addition, they may have been willing to take on weak government banks that the government wants to merge to gain a foothold in the sector. At the right price – If the government is not strong in other respects – banks need to find customers.
This does not seem to be fair because most NBFCs are well-governed by the children of business houses. At this point, however, it is prudent to allow NBFCs to remain so.
The RBI has been good enough to allow investors to hold 26% shares in their banks, raising the yield from the current 15% which seems to be correcting. Allowing the advertiser to have regulatory authority seems unreasonable; voting rights are also 26% denied.
The idea supported by the PJ Nayak Committee, while calling for an announcement that holds 25%, seems positive; The table argued that the low level of such disclosure could weaken the relationship between management and shareholders, weaken the borrower.
For the first five years, however, investors must hold 40% of the equity capital. They must make a detailed statement of how they will reduce their shares to 26%.
Facilitating the ownership of non -advertising shares is a welcome addition. While maintaining the limit for non-professionals-naturalists and non-funded organizations/organizations-at 10%, the new rules prescribe a 15% limit for financial institutions, PSUs, and the government. This is less than the 40% currently allocated for one class of FI, non -governmental organizations, PSUs, and government.
The central bank reasons that the reason for limiting the shareholding of a promoter should also apply to non -promoter persons; it seems reasonable.
The increase in the minimum capital required for new banking licenses to a General Bank from Rs 500 crore to Rs 1,000 crore and SFB from Rs 200 crore to Rs 300 crore is a good deal; We need our borrowers to finance.
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