Monday, November 15, 2010

CII OPPOSE NBFC PREFERENCE FOR BANK LICENCE

The Confederation of Indian Industry (CII) told the Reserve Bank of India that it did not favour
automatic conversion of non-banking finance companies (NBFCs) into banks. The industry body sought minimum capital requirement of Rs. 1,000 crore for setting up a bank. NBFCs, whether part of an industrial group or not, (should) be treated on par with other applicants and allowed to promote a bank with fresh capital. NBFCs are complementary financial institutions to banks, typically focusing on niches that are under served and neglected by the normal banking channel.

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