The present draft guidelines on ‘Licensing of New Banks in the Private Sector’ have been framed taking into account the experience gained from the functioning of the banks licensed under the guidelines of 1993 and 2001 and the feedback and suggestions received in response to the Discussion Paper

1. New Banking License
Snapshot Overview
Riskpro, India
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2. THE NEW BANKING FRAMEWORK
ONLY NON FINANCIAL Entities / groups / operating in the private NOT ALLOWED
sector; owned and controlled by Residents can promote NOHC Entities / groups / having greater
(Diversified ownership, sound credentials, 10+ years track record, than 10% income/assets in real
Management to be professional with adequate corporate governance standards ) estate construction and broking
activities in last 3 years
Source of Promoter Equity in NOHC should be transparent /verifiable.
RBI Should be able to regulate this consolidated group
Non Operative Holding Company
(NOHC)
~ Registered with RBI as NBFC ~ Regulated by RBI ~ Cannot borrow funds ~No operations, merely a
holding company ~ 50% of Board of Directors totally independent of promoter group
NEW BANK
~ Minimum capital - Rs 500 Crore ~ Business Model to RBI OTHER GROUP FINANCIAL
~ Existing NBFC can turn a Bank only if ALL activities permitted in Banks ENTITIES
~ No shareholder, group to own 10%+ in New Bank except NOHC
~ Arm’s length relationship with promoter group entities ~ Compulsory ownership by NOHC
~Listed on Exchange in 2 years ~ CAR 12% for 3 years of ALL financial entities of the
~ 25% branches in unbanked rural centres Promoter group. Ie financial entities
~ Group exposure as % of net-worth: Max 10% single; 20% all entities to be under the NOHC umbrella
~ New Bank on CBS, use Technology, innovation, have grievance cell
~ Cannot do any activity that is
Shareholder Holding Period Banking in nature. To move all such
activities to new Bank.
NOHC Min 40% at inception Lock in 5 years
~ No new Financial entity for 3 years
Max 40%, 20%,12% Year 2, 10,12 from bank License date
Foreign Holding Max 49% 5 Years. 5+ years, as per policy.
RING FENCED
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3. Who is Riskpro… Why us?
ABOUT US MISSION
 Riskpro is an organisation of member firms
around India devoted to client service  Provide integrated risk management
excellence. Member firms offer wide range consulting services to mid-large sized
of services in the field of risk management. corporate /financial institutions in India
 Currently it has offices in three major cities  Be the preferred service provider for
Mumbai, Delhi and Bangalore and alliances complete Governance, Risk and Compliance
in other cities. (GRC) solutions.
 Managed by experienced professionals with
experiences spanning various industries.
VALUE PROPOSITION DIFFERENTIATORS
 You get quality advisory, normally delivered
by large consulting firms, at fee levels  Risk Management is our main focus
charged by independent & small firms
 Over 200 years of cumulative experience
 High quality deliverables
 Hybrid Delivery model
 Multi-skilled & multi-disciplined organisation.
 Ability to take on large and complex projects
 Timely completion of any task due to delivery capabilities
 Affordable alternative to large firms  We Hold hands, not shake hands.
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4. Risk Management Advisory Services
Basel II/III Advisory Corporate Risks Information Security
 Market Risk  Enterprise Risk Assessment  IS Audit
 Credit Risk  Fraud Risk  Information Security
 Operational Risk  Risk based Internal Audit  IT Assurance
 ICAAP  Operations Risk  IT Governance
 Forensic services
SERVICES
Operational Risk Governance Other Risks
 Process reviews  Corporate Governance  Business/Strategic Risk
 Policy/ Process Review  Business Strategic risk  Reputation Risk
 Process Improvement  Fraud Risk  Outsourcing Risk
 Compliance Risk  Forensic Accounting  Contractual Risk
Training Recruitment
 Banking – E Learning  Virtual Risk Managers
 Corporate Training  Full Time Risk Professionals
 Regular Risk Management Training  Part time Risk Professionals
 Online Training material
 Risk Managers on call – free
 Workshops / Events
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5. Contacts
MUMBAI DELHI BANGALORE
Manoj Jain, Director Rahul Bhan, Director Casper Abraham, Director
B-44 Glaxo Building, Near C-561, Defence Colony, No. 62/B Modi Residency
Mt. Mary’s Steps, Bandra New Delhi-110 024 Millers Road, Benson Town
(W), Mumbai 400050 Bangalore 560 046
M- 98337 67114 M- 99680 05042 M- 98450 61870
E- manoj.jain@riskpro.in E- rahul.bhan@riskpro.in E- casper.abraham@riskpro.in
Email : info@riskpro.in
Web: www.riskpro.in
THANKS
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