Nayak report calls for single bank licencing regime

Tags: News
There is a need for bank licencing regime to move to a uniform mode for all broad-based banks, irrespective of their ownership, an RBI panel report said today.

The report on banking governance of bank boards, headed by ex-chairman of Axis Bank P J Nayak, said the one-licence regulatory regime for banks with broad-ranging businesses would also not preclude RBI issuing niche licences under other more narrowly defined, licensing regimes, if it were to choose to do so.

"It would be desirable for the bank licensing regime to move to a uniform license across all broad-based banks, irrespective of ownership, subject to inter-jurisdictional reciprocity considerations in respect of foreign banks, and niche licenses for banks with more narrowly defined businesses," the report said.

It further said such a licensing regime would also involve uniform investment limits across investor categories, irrespective of ownership.

Apart from the government's own controlling stake, all other investment limits recommended for private sector banks should also thereby be applicable to public sector banks.

"This will facilitate larger pools of capital coming into these banks, and assist in improving public sector bank market valuations," the report added.

For distressed public sector banks, it provides the government with another financing option through the induction of private equity with board representation, a partnership which could also help improve board governance.

"Other than the government's own stake, which would be unconstrained, all other investment limits for different categories of investors in private sector banks should also be applicable to investors in public sector banks," the report added.


  • All the debates are glossing over the key question if children are eating healthy food

    For some time now, we have been strapped in noodle debates. First Maggie noodles and now our own swadeshi noodles that Baba Ramdev is making.


Stay informed on our latest news!


Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs


Amita Sharma

Smart cities for the smart citizens

The 21st century has been spoken of as the urban ...

Zehra Naqvi

Baby and you

Every person who’s had a chance to be a parent ...

Bubbles Sabharwal

Women of the world, unite for a change

Last week I attended the Women in the World forum ...


William D. Green

Chairman & CEO, Accenture