Indian industrial conglomerates, including Reliance Group and Mahindra & Mahindra, are set to be given access to the country’s lucrative retail banking sector after policymakers decided to drop years of opposition to the move.
The Reserve Bank of India, the central bank, has agreed to allow such groups to apply for licences, according to people familiar with the situation. The move will intensify competition for domestic lenders such as ICICI and HDFC, as well as for foreign groups including HSBC and Citigroup.
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