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RBI governor rules out banking licences for corporates

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Reserve Bank of India Governor Sanjay Malhotra stated that corporates will not be allowed banking licenses. The monetary policy committee retains flexibility on interest rates. Future rate decisions will depend on inflation and growth outlook. There is no plan to revise the 26% limit on promoter shareholding in private banks. RBI supports diversified ownership. The ultimate responsibility for a bank's operations lies with its board.
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