RBI Rules Out Business Houses Promoting Banks

22 Jul 2024 CW Team

The Reserve Bank of India (RBI) has firmly stated that it has no intentions of permitting business houses to promote or run banks. This clarification comes amid ongoing debates about the role of corporate entities in the banking sector.

RBI Governor Shaktikanta Das addressed the issue, emphasising that the central bank's stance remains unchanged regarding the promotion of banks by business houses. The RBI's position is grounded in the principle of maintaining financial stability and ensuring the safety and soundness of the banking system.

Das highlighted that the current regulatory framework is designed to separate commercial interests from banking operations. This separation is intended to prevent potential conflicts of interest and ensure that banks operate with a focus on financial stability and consumer protection, rather than profit-driven motives.

The RBI's decision also reflects concerns about potential risks associated with allowing business houses to control banks. There are apprehensions that such a move could lead to increased risks in the financial system, including issues related to governance, conflicts of interest, and the overall health of banks.

While the RBI remains open to discussions on evolving the banking sector, it has made it clear that the current regulatory environment will not accommodate business houses as bank promoters. The central bank's stance underscores its commitment to maintaining a robust and resilient banking sector.

Infrastructure Urban

10 Mar 2026

ABB to Invest Rs 6.25 Billion to Expand India Manufacturing

ABB recently announced plans to invest approximately Rs 6.25 billion ($75 million) in India during 2026 to expand its manufacturing footprint and research and development capabilities. The investment follows more than $35 million spent in 2025 and reflects the company’s continued focus on strengthening its ‘local-for-local’ strategy in the country.The investment will support ABB’s Electrification, Motion and Automation businesses and expand manufacturing capacity for infrastructure sectors such as renewable energy, metro rail, data centres and industrial applications. Approximately 300..

Six WOLFF Cranes Handle 60,000 m³ Concrete for German Hospital

Six WOLFF tower cranes are playing a key role in constructing a new hospital complex in Memmingen, Germany, supporting large-scale material handling for the project. The facility is being built on a 7.7-hectare site and will feature six floors, around 480 beds and a gross floor area exceeding 75,000 sq m.Building shell works began recently in February 2025. One WOLFF 6531.12 Cross crane supported early site preparation before being dismantled in autumn 2025, while five remaining cranes continue operations. Over an average deployment period of 16 months, the cranes are expected to move approxim..

REC Funds Rs 115.6 Million CSR Support for Bihar Eye Hospital

REC recently committed Rs 115.6 million under its Corporate Social Responsibility (CSR) programme for the procurement of clinical and non-clinical equipment at Sankara Eye Hospital in Saharsa, Bihar. The initiative aims to strengthen healthcare infrastructure and improve access to specialised eye care services in the region.A Memorandum of Agreement (MoA) was recently signed between Pradeep Fellows, Executive Director (CSR), REC Limited, and Wg Cdr V. Shankar (Retd), Trustee and Executive Director of Sankara Eye Hospital, at the REC office in the SCOPE Complex, New Delhi.The support is expecte..