RBI to release new rules for bank operations
The Reserve Bank of India has announced it will soon issue new rules for how banks and their subsidiaries can operate together.
Unlike the earlier 2024 draft, which wanted only one company in a bank group to handle each type of business, the final guidelines drop that restriction.
Now, banks get more say in how they split up their work—making things a bit simpler and more flexible.
Banks can now decide business roles within group
Banks can now decide business roles within their group without worrying about overlap limits.
Non-bank subsidiaries will be treated as top-tier NBFCs (Non-Banking Financial Companies) and will have to follow stricter banking rules, but these changes kick in two years from when the final guidelines are officially released.
Overall, this move is meant to help banks operate with fewer roadblocks and adapt faster.