An internal committee of the Reserve Bank of India (RBI) on November 20 proposed an overhaul of the licensing policy for private banks and suggested allowing large corporate and industrial houses to float banks in India after suitable amendments to the Banking Regulation Act, which should be aimed at preventing concentration of risks and unabated lending among group companies. For years, the question of allowing conglomerates to float banks has been a contentious issue with the banking laws barring it and large corporates pushing back. The RBI committee has also recommended that after 15 years, promoters should be allowed to hold up to 26%, instead of the current cap of 15%, a move that will help the promoters exploit the upside in a bank. Currently, there are at least three private lenders with over 26% promoter holding.