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.

Technology

22 Dec 2025

Bluebeam launches Task Link and mobile upgrades

Bluebeam, part of the Nemetschek Group, has announced the launch of Task Link along with major upgrades to its iOS and Android applications, aimed at unifying office and field teams across construction projects.Task Link is described as a first-of-its-kind native integration between Bluebeam Revu and GoCanvas, enabling a connected workflow between planning and on-site execution. Through the integration, tasks can be pushed directly from Revu to the field, with real-time updates and automated notifications as work progresses. Field teams can capture verifiable on-site data using GoCanvas mobile..

Kumaraswamy Invites Envoys to Join Flagship Bharat Steel 2026

Union Minister for Steel and Heavy Industries, HD Kumaraswamy, held an interactive meeting with Ambassadors and diplomatic representatives of key partner countries, inviting them to actively participate in Bharat Steel 2026, the flagship international conference-cum-exhibition of the Ministry of Steel scheduled for April 2026.The meeting saw strong participation from representatives of countries that play a significant role in the global steel value chain. It formed part of the Ministry’s broader outreach efforts to deepen international cooperation and strengthen India’s engagement with ma..

Centre Clears Rs 8.87 Bn Plan for World-class Mumbai Marina

The Union Government has approved a Rs 8.87 billion proposal to develop a world-class marina at Mumbai Harbour, a move expected to significantly boost coastal shipping, maritime tourism and waterfront-led urban development in India’s financial capital.The proposed ‘Viksit Bharat Mumbai Marina’ has been cleared by the Ministry of Ports, Shipping and Waterways in line with the vision of Prime Minister Narendra Modi to create global-standard tourism destinations and strengthen the country’s maritime economy. The project is designed to open up Mumbai’s waterfront for public use while att..