RBI Reviewing Bank Ownership Structure

The Reserve Bank of India (RBI) is reviewing the ownership structure and eligibility criteria for bank licensing as the expanding economy calls for more banks in the country, Governor Sanjay Malhotra said on Friday.

- SUBRATA PANDA

"An ordinary person trusts their money with the banks. It is important to have a trustworthy person, owner and manager in the bank. What kind of eligibility criteria should we have for that? What kind of conditions should we have? We should talk to everyone about it. Our economy is growing. We need more banks. Keeping that in mind, if there is a need for change, it will be done," Malhotra said at the post-monetary policy press conference.

His remarks come amid speculation that the RBI might consider changes in guidelines that would allow foreigners to own more stake in Indian banks.