File photo: Sanjay Malhotra, Governor of the Reserve Bank of India (RBI) | Photocredit: Bloomberg
Large banks with subsidiaries in the same industry will say a sigh of exemption that the RBI sighed, said that the proposed bar about overlapping in the companies performed by a bank and is removed its groups.
According to the Circular – Forms of Business and Prudential Regulation for Investments of the RBI, which was published in October 2024, only one entity within a banking group (the bank and its group entities) can undertake a certain form of permitted cases.
Furthermore, multiple entities within a banking group may not undertake the same company or acquire the same category of license/ authorization or registration of a regulator of a financial sector.
Moreover, there will be no overlap in the credit activities that the bank and its group entities have carried out.
With the RBI who wants to remove the bar in the field of company overlap, entities such as Icici Bank (full subsidiary Icici Home Finance Home Loans) and HDFC Bank (subsidiary HDB Financial Services) can undertake, and Axis Bank (Axis Bank (Axis Bank (full subsidiary) are retained.
RBI Governor Sanjay Malhotra said that the draft guidelines for forms of things and investments for banks, published in October 2024, have been completed and will soon be published.
“Based on feedback and assessment, the proposed crossbar about overlapping in the companies performed by a bank and its group entity are removed. The circular is intended to streamline the activities that banks and their groups of the group offer and at the same time offer more operational freedom to banks and NOFHCs (non-operative financial holding companies,” he said for sharing companies, “” for sharing companies).
Published on October 1, 2025
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