Universal banking is a concept of a financial mall where a wide variety of financial services, including insurance service, commercial and investment services available under one roof. In the other words Universal Banking combines the services of commercial bank and investment services.
Resident individuals and professionals having 10 years of experience in banking and finance at a senior level are eligible to promote universal banks. The initial minimum paid-up voting equity capital for a bank shall be 500 crore rupees. Thereafter, the bank shall have a minimum net worth of 500 crore rupees at all times. Large industrial houses are excluded as eligible entities but are permitted to invest in the banks up to 10 per cent.
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