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MUMBAI:
Banks
that have a large conglomerate structure will now have to consolidate similar activities under one entity, according to RBI’s new draft circular for banks. RBI has also asked banks with large
NBFC
arms to comply with rules pertaining to upper-layer NBFCs. Only a single
entity
within a bank group is allowed to engage in a specific type of
business
under the new circular.
It also specifies that the core business of the bank – including accepting deposits and lending – must be conducted within the bank’s departments.
