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Home » Blog » Private Bank Ownership: RBI Accepts Recommendations to Raise Cap on Promoter Stake to 26% in Private Banks from 15%

Private Bank Ownership: RBI Accepts Recommendations to Raise Cap on Promoter Stake to 26% in Private Banks from 15%


The Reserve Bank of India on Friday said that it has accepted 21 out of the 33 recommendations of the Internal Working Group set up to review the extant guidelines on ownership and corporate structure for Indian private sector banks.

The key recommendations include that the cap on promoters’ stake in long run of 15 years will be raised from the current levels of 15 per cent to 26 per cent of the paid-up voting equity share capital of the bank.

“This stipulation should be uniform for all types of promoters and would not mean that promoters, who have already diluted their holdings to below 26 per cent, will not be permitted to raise it to 26 per cent of the paid-up voting equity share capital of the bank,” the RBI said.

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