Governor unveils 22 measures to bolster credit flow

“That has been done away because it is felt that the large exposure framework is able to take care of the needs at the individual bank level,” Malhotra added.

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While a draft circular issued last October had proposed that only a single entity within a bank group (the bank and its group entities) can undertake a particular form of permissible business, the RBI on Wednesday decided to drop the proposed restriction on overlaps in business activities between banks and their group entities in the final guidelines, which are expected shortly.

“We do not want to micromanage, we believe that the banks will take a conscious, considered, balanced view depending on their needs as to how they wish to conduct their own business that is why we have just left it to them,” he said.