Mumbai : The Reserve Bank of India top management has conveyed to the new government that it backs the plan to set up a holding company structure for state-owned banks and reduction in government stake in the banks to below 51%, banking industry officials said.

“The RBI believes that the fiscal situation, the existing PSU bank management troubles, and the Nayak committee report provide the government with a good opportunity to consider lowering its stake below 51% in a calibrated manner,” a banking industry official told Cogencis. “The shift to a holding company structure is also mooted but is seen as a less politically sensitive issue.”   -Cogencis

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