The Reserve Bank of India has released the draft circular on ‘Forms of Business and Prudential Regulation for Investments’. The Reserve Bank has reviewed these regulations with an objective to ringfence the banks’ core business from other risk bearing non-core businesses as well as to provide operational freedom to banks for making investments in financial services/non-financial services companies and Alternative Investment Funds.
Comments on the draft circular are invited from banks and other stakeholders by November 20, 2024. Feedback on the draft circular may be forwarded by email with subject line “Feedback on Draft circular on Forms of Business and Prudential Regulation for Investments”.
