The Reserve Bank Of India (RBI) will allow Indian industrial companies to apply for retail banking licenses, Financial Times reports. The central bank, which had previously opposed opening the retail banking sector to corporates on the grounds that they pose risks to the stability of the sector, will release the draft guidelines in the next few weeks. Companies expected to seek full banking licenses include Reliance Group, Mahindra & Mahindra and Religare. Reliance and Mahindra have suggested a blanket ban on conglomerate-controlled banks lending to other operations within the groups to overcome any conflict of interest fears.
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