RBI moots holding co form for FIs

Industry experts view such a move to impact leading private sector banks like ICICI and HDFC, besides the state-run State Bank of India (SBI).

A working group headed by RBI Deputy Governor Shyamala Gopinath has recommended that the FHC model can be extended to all large financial groups, irrespective of whether they have a bank or not.

“Therefore, there can be banking FHCs controlling a bank and non-banking FHCs that do not contain a bank,” the panel said. Further, it has also called for a separate regulatory framework and a new Act for regulation of FHCs.