Equity Investment by Banks – Review

Banks which have CRAR of 10 per cent or more and have made net profit in the previous financial year need not approach RBI for prior approval for equity investments in Financial Services Companies in cases where after such investment, the holding of the bank remains less than 10 per cent of the investee company’s paid up capital, and the holding of the bank, along with its subsidiaries or joint ventures or entities continues to remain less than 20 per cent of the investee company’s paid up capital. 
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Based on RBI Circular dt 16/9/15.

Please visit www.rbi.org.in  for any further clarification if required…………….. Poppy