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Press Information Bureau
Government of India
Ministry of Finance
30-March-2012 17:27 IST
Limits on Holding Company Expansion
A Working Group (WG) was constituted by Reserve Bank of India (RBI) on introduction of Financial Holding Company (FHCs) structure in India in June 2010. WG has submitted its report in May 2011. The WG has proposed to put in place some limit on the expansion of non-banking business of Banking FHCs after the existing financial groups dominated by the banks migrate to holding company structure (i.e. Banking FHCs). Report of WG is available on RBI’s website www.rbi.org.in.
This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Lok Sabha today.
SS/SL
Limits on non banking expansion: proposed constraints for banking groups converting to financial holding company structure. A Working Group constituted in 2010 to examine a Financial Holding Company structure recommended limits on the expansion of non banking activities by groups that migrate into Banking Financial Holding Companies; its report has been published on the central bank's website.Press 'Enter' after typing page number.