1. Eligible promoters should have diversified ownership, sound credentials and integrity and a successful track record of at least ten years.
2. The RBI has barred groups having an exposure even of 10 per cent (by way of assets or income or both) in real estate and/or broking activities over the past three years. Evidently, these sectors are ‘speculative' in nature and the business model adopted in such businesses will be ‘misaligned' with that required by a bank.
3. Corporate structure: New banks will be set only through a wholly-owned non-operative holding company (NOHC), which will be registered with the RBI as a non-banking finance company. All financial activities of the promoter group will come under the NOHC. The idea is to ring fence the financial interests of the group from its other business activities and give a measure of protection to the bank's depositors.
4. The minimum capital requirement will be Rs.500 crore.
5. Corporate governance: At least 50 per cent of the directors of the NOHC should be independent directors.
6. The business model should propose how the bank proposes to achieve financial inclusion. The bank should have a fourth of its branches in unbanked rural areas.
7. RBI will get necessary powers for extensive supervision.
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