Under the regulatory framework of the Reserve Bank of India, what is the maximum permissible holding limit for a promoter in a newly established private sector bank after 15 years of operations?

💡 Solution & Explanation

Reserve Bank of India licensing guidelines mandate that bank promoters must reduce their equity stakes down to 15 percent of paid-up voting capital over a fifteen-year timeframe. Other percentage limits mentioned in distractor options apply to initial promoter holdings or different categories of non-banking financial institutions. Promoter dilution norms ensure diversified shareholding in universal banking institutions.