In one other replace, the panel additionally urged elevating the cap on the stake of non-public financial institution promoters to 26 per cent from the present 15 per cent in the long term (15 years).
“As regards non-promoter shareholding, a uniform cap of 15 per cent of the paid-up voting equity share capital of the bank may be prescribed for all types of shareholders,” the RBI’s Internal Working Group really useful.
It additional added that large company or industrial homes could also be allowed as promoters of banks solely after vital amendments to the Banking Regulation Act, 1949.
The panel additionally stated that the minimal preliminary capital requirement for licensing new banks ought to be enhanced from Rs 500 crore to Rs 1,000 crore for common banks and from Rs 200 crore to Rs 300 crore for small finance banks.
“For payments banks intending to convert to a small finance bank, a track record of 3 years of experience as payments bank may be considered as sufficient. Small finance banks and payments banks may be listed within 6 years from the date of reaching net worth equivalent to prevalent entry capital requirement prescribed for universal banks’ or 10 years from the date of commencement of operations, whichever is earlier,” RBI stated in a launch.