RBI’s new norms for Private banks

• On November 26, 2021, Reserve Bank of India (RBI) released new norms for Private Banks.

• Under the new norms, RBI has accepted the suggestion to increase cap on stake of promoters in banks from 15 percent to 26 percent.

• However, it is still examining if industrial houses should be allowed to run banks in accordance with the recommendations of an internal working group (IWG).

• In all, RBI accepted 21 out of 33 recommendations of the IWG.