Industrial and business houses may be allowed to set up banks, with the Reserve Bank of India (RBI) saying it could be one way to broaden the reach of banking in the country and thereby achieve inclusive growth. The RBI has laid out options for the minimum capital required and the extent of promoter shareholding where it has highlighted the Canadian model. It has also said that the aggregate non-resident investment, including FDI, NRI and FII, could be capped a suitable level below 50% and locked at this level for 10 years.
Read more : RBI considers corporates in banks, highlights Canada model