The Reserve Bank of India’s (RBI) working group on private bank ownership paved way for the conversion of large non-banking financial companies (NBFCs) to banks. It proposed that well-run NBFCs that have operated for a minimum of ten years be allowed to convert if they clear due diligence.

“The announcement is just a recommendation, there could be a lot of changes,” said Umesh Revankar, MD of Shriram Transport Finance in an interview with CNBC-TV18.

According to him, there are certain challenges with regards to converting an NBFC into a bank.

“Shriram Transport is not in a hurry to become a bank,” added Revankar.

He expects more debate on the internal working group's recommendations until final guidelines.

The MD further said, “Starting a bank is much easier than converting into one.”

For the entire interview, watch the video