Pvt Bank Holdings Cap In Line With Global Stds: RBI

Chennai, July 9 | Updated: Jul 11 2004, 04:49am hrs
The Reserve Bank of India has said that its move to restrict maximum holdings, by a group or entity in a private bank, was in line with global best practices and indicated that it will not be implemented in the present form.

It is just a discussion paper. We are inviting comments on the proposals (on restricting maximum holdings in private banks by a group or an entity) from the banks concerned and others. After getting the comments, we will again come out with another discussion paper on the subject, incorporating the changes, RBI deputy governor Rakesh Mohan said.

He said the proposal to restrict the equity holdings by a group or entity to 10 per cent ceiling, was in line with the best global practices in banking. The proposals clearly show RBIs thinking and the way forward, Mr Mohan told PTI here on Thursday evening.

Asked how long it would take for the new rules to come into place, the RBI deputy governor said: it will be days and weeks and not months and years.

PTI