• RBI Governor Sanjay Malhotra stated that the RBI is not considering proposals to allow corporates to obtain banking licenses due to inherent conflicts of interest when handling depositors' money.
• While NBFCs can become SFBs or universal banks, the eligibility criteria remain the same.
• Corporates can have up to 10% equity ownership without control in a bank.
• The Banking Regulation Act limits voting rights to 26%, and promoters must reduce shareholding to 26% over 15 years.
• Malhotra emphasized the board's ultimate responsibility while acknowledging the need to consider the extent and nature of issues before holding them accountable.
