RBI panel's proposal to allow big corporates/industrial houses to own and run banks and NBFCs is contrary to RBI's own earlier stand, economic logic and historical evidence of multiple economic crises caused by reckless private financial sector players

Banking and non-banking shares rose up to 20% in the early morning trade on BSE after RBI's IWG recommended guarded entry of corporate into banking space, and a proposal to once again allow promoters of banks to hold up to 26% stake or non-promoter investors to take up to 15% stake

India Stock Market Highlights Today: IndusInd Bank, followed by Bajaj Finserv, Bajaj Finance, Reliance Industries, ONGC, NTPC and Tata Steelwere among the top gainerz in the Sensex pack. On the other hand, HDFC, Asian Paints, ITC and Bharti Airtel were among the laggards

Large industrial houses like Aditya Birla group, Bajaj group, Mahindra and Mahindra, and Tata Sons already have large NBFCs with more than a decade of operations. In fact, these NBFCs are bigger than many mid-sized banks in the country

NPCI, which owns and operates the UPI payment system, is like a regulator for retail payments. ICBC is among 131 investors offered shares in NPCI though it is yet to subscribe to its quota

RBI panel will examine and review the extant licensing and regulatory guidelines relating to ownership and control, promoters' holding, requirement of dilution, control and voting rights

Payments Banks are mandated to invest a minimum of 75 per cent of their deposits in government securities where returns are abysmally low

RBI is coming down heavily on private banks' promoters who are not adhering to its guidelines on stake reduction and mandatory IPO

The RBI has decided to constitute an internal working group to review the existing liquidity management framework and suggest measures to simplify it

Can India's premier airline be rescued?

CEPR in a new report said that it is high time for a review of regulations and legislation and for re-working the model of governance and ownership norms for Indian private sector banks

On November 2, RBI had allowed banks to provide PCE for debt raised by non-deposit-taking systematically important non-banking financial companies and housing finance companies

Fintech players are making a mark in the lending business but need a sustainable business model.

The RBI had in April directed all the banks to stop dealing with individuals and businesses dealing in virtual currencies in next three months - the deadline ended on July 5.

Take Airtel, for instance. It's planning to tap its 2.5 lakh retail stores (who sell prepaid recharges) across the country to deliver its banking services. These retail outlets would work like a bank branch where people can deposit and withdrawal cash.

Payment banking licence will allow companies to collect deposits, Internet banking, facilitate money transfers, and sell insurance and mutual funds.

If SME sector can avail benefits of future rate cuts, it will lead to overall push for a steady economy.

Sources close to RIL said the application was not a step towards setting up of a full-fledged bank as it otherwise would have applied for a banking licence.