The Reserve Bank of India (RBI) on October 04, 2024, released a draft circular on Forms of Business and Prudential Regulation for Investments. The comments on the draft circular are invited from banks and other stakeholders by November 20, 2024.
The paragraphs 4 and 5 of the Master Direction- Reserve Bank of India (Financial Services provided by Banks) Directions, 2016 consolidate the regulations on forms of business and prudential regulation for investments by banks. The Reserve Bank has reviewed these regulations with an objective to ringfence the banks’ core business from other risk bearing non-core businesses as well as to provide operational freedom to banks for making investments in financial services/non-financial services companies and Alternative Investment Funds.
The Link for the draft - https://website.rbi.org.in/web/rbi/-/notifications/draft-circular-forms-of-business-and-prudential-regulation-for-investments
[Press Release: 2024-2025/1225]
