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RBI May Allow Privatization Of Banks Under Tatas, Birlas, Ambanis

As the news emerging from other sources, there is a possibility of the top business tycoons of India included Tatas, Ambanis and Birlas to participate in the race of banking now.

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The banking sectors may go through a major privatization phase in India as the government is thinking of relaxing some rules for entering in the banking sector. As the news emerging from other sources, there is a possibility of the top business tycoons of India included Tatas, Ambanis and Birlas to participate in the race of banking now.

As per the rule, the industrial houses that have less than 60 per cent of turnover from non-financial entities are not permitted to apply for bank licences and the equity participation is also allowed for only 10 per cent.

Speculation has been doing the rounds since the government sources have announced the news, the step of privatization of banks is to be taken rather skilfully and carefully because there are high chances of misuse of the opportunity.

The RBI is planning to allow large corporations to launch full-scale banks similar to the private-sector entities like HDFC and ICICI. This decision attracted rather large companies towards itself like Tata, Birla, Mahindra, Ambani and a lot more. This gives us an idea that these Giants might set up their own banks real soon with the newly received license.

The idea of change was posed into RBI after large risks that NBFC bring to the financial system. Although the idea is still to be talked about as it requires a change in certain articles of the Constitution, it still is a large leap for RBI to make.


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reserve bank of india tata group mukesh ambani