RBI constitutes P K Mohanty led “Internal Working Group”

An Internal Working Group (IWG) has been constituted by the Reserve Bank of India with a prime objective of reviewing the extant guidelines on ownership and corporate structure for Indian private sector banks. The Internal Working Group (IWG) will be headed by Dr. Prasanna Kumar Mohanty, Director, Central Board of RBI. The Internal Working Group (IWG) is supposed to submit its report by 30th September 2020.

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About an Internal Working Group (IWG):

The Terms of Reference of the Internal Working Group is as follows:

• The Internal Working Group will evaluate the extant licensing guidelines and regulations that are related to ownership and control in Indian private sector banks.
• The group will also suggest appropriate norms while keeping in mind the issue of excessive concentration of ownership as well as control, and having regard to international practices including the domestic requirements
• The group will analyse and review the eligibility criteria for individuals/ entities to apply for banking license and make recommendations on all related issues.
• The group will study the present regulations on holding of financial subsidiaries through non-operative financial holding company (NOFHC) and will suggest the manner of migrating all banks to a uniform regulation in the matter, including providing a transition path.
• The group will examine and review the norms for promoter shareholding at the initial/licensing stage and subsequently, along with the timelines for dilution of the shareholding.
• The group will also identify any other issue relevant to the subject matter and make recommendations thereon.

Composition of the Internal Working Group:

The Internal Working Group (IWG) consists of 5 members:

• Dr. Prasanna Kumar Mohanty, Director, Central Board of RBI
• Prof. Sachin Chaturvedi, Director Central Board of RBI
• Smt. Lily Vadera, Executive Director, RBI
• Shri S. C. Murmu, Executive Director, RBI
• Shri Shrimohan Yadav, Chief General Manager, RBI-Convenor

Important takeaways for all competitive exams:

• RBI 25th Governor: Shaktikanta Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.

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