RBI: Banks to bring similar businesses under one legal entity – Times of India

MUMBAI: banks which have a large conglomerate structure, will now have to consolidate such activities into one entity, according to RBI’s new draft circular for banks. RBI has also requested banks with large NBFCs arms to comply with the rules pertaining to upper tier NBFCs. Only single entity within a banking group has the right to participate in a certain way business as per the new circular. It also specifies that the main business of the bank – including the acceptance of deposits and the granting of loans – must be carried out in the branches of the bank.