Sources familiar with the developments said the final guidelines, to be announced by the end of the month, would set aside its earlier reservations about these entities.
In its draft guidelines released in August 2011, RBI had said entities having significant (10 per cent or more) income or assets or both from real estate construction and/or broking activities individually or taken together in last three years will not be eligible.”
Voicing its concerns, RBI had said “past experience with brokers on the boards of banks has not been satisfactory”.
RBI Deputy Governor Anand Sinha had recently said the regulator and the finance ministry would arrive at a common position on the issue.
The draft norms faced opposition from many quarters, including the finance ministry, on the ground that if banks were allowed to undertake broking activities, there was no reason why entities engaged in such legally permitted activities should be disallowed.
Also, if banks could have sizeable exposure in real estate, which was seen by RBI as a sensitive sector, there was no reason why real estate developers should be barred from setting up banks.
The sources, however, said while
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