RBI: Banks should bring similar business under one entity

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.