RBI to Discuss over Wholesale, Long-Term Banks

RBI has released a discussion paper seeking comments on a new category of banks-wholesale and long-term finance banks that will fund large projects.

The regulator has been trying to bring in new types of lenders into the banking system to introduce new ideas and develop niches to ensure that more segments are covered. According to the discussion paper, these wholesale and long-term finance banks will focus primarily on lending to the infrastructure sector and small, medium and corporate businesses.