new delhi sachin chaturvedi wears many hats he is the director general of think tank ris and is also on the rbis central board he was also part of the internal working group iwg set up by the rbi to revisit bank licensing norms in an interview with toi he explains the thinking behind the recommendations excerptsa lot of attention is currently focused on the entry of the corporate sector into banking did you expect this kind of a reactionthe reactions are on two or three different planes one is focusing on the entry of large corporate houses there are quite a few reactions that are welcoming the new scope for capital infusion in the banking sector they are welcoming the efforts on enriched regulatory architecture and they are also trying to bring out the fact that the report has not just covered the architecture for universal banks but also the mechanisms needed for differentiated banks like small finance banks and payments banks there is a need for a mix of institutional architecture and governance models to deliver what is required the regulatory architecture should reflect the new realities emanating out of the rise of new technologies in the financial sector and the plurality of new actors in the realm of finance require changes in the banking regulation acta exrbi governor a former deputy governor two former ceas chief economic advisers and a former finance secretary are among those who are critical about the entry of corporate houses and have concerns around regulating them and also the global experience how do you view itwe shouldnt completely overlook what has been existing in india entry of private banks will not happen for the first time with this report this has been the case since 1993 the provisions and requirements of various rounds of licensing have not been uniform they reflect regulatory preferences of those times harmonisation across those guidelines is important particularly when there is a new confidence for a 5trillion economy and a new buoyancy in the economy after 1993 the efforts to strengthen and regulate the private sector banks were made in 2001 and later in 2013 when we talked about the nofhc nonoperative financial holding company to support the banking structure in 2016 we made an effort to further insulate it and bring it forward to improve delivery the iwg report is clear that a holding company structure is a desired format to achieve the necessary ringfencing objectives this should be sustained as the nofhc would insulate the credit giving institution from those who are availing it what we have tried to do is say that private banks are welcome but should be properly regulated we have suggested two tracks to strengthen the regulations and bring it through the law provision for nofhc was through rbi guidelines and we have suggested that the rbi should work with the government to ensure that the tax provisions treat the nofhc as a passthrough structurehow do you safeguard corporate houses