The Reserve Bank of India has increased the minimum initial capital requirement for licensing new banks from Rs 500 crores to Rs 1000 crore for universal banks and from Rs 200 crores to Rs 300 crores for small finance banks, reported PTI.

The central bank has also proposed to raise cap on promoters’ stake in private banks from 15% to 26% in 15 years.

A panel of RBI has also suggested that well-run large Non-Banking Financial Companies, with asset size of Rs 50,000 cr and above, may be considered for conversion into banks.

Large corporates may be allowed as promoters of banks only after amendments to Banking Regulation Act, said the RBI panel.