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RBI moves a step closer to long-term financing banks
April 14, 2017
The discussion paper released recently by the reserve bank of India has been taken into account and RBI is now moving ahead with the plan of differentiated banks for providing wholesale and long-term financing.
It was an year before, that the former RBI governor, Raghuram Rajan proposed lenders that will contribute to the burden sharing for of long term projects. As per the discussion paper, Rs. 1,000 crore is required for setting up a wholesale and long-term financing bank.
RBI has also mentioned in the guidelines that the corporate giants can only enter this zone as investors that too with not more that 10 percent stake.
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