India's banking sector could be in for an overhaul if the RBI implements a report authored by its internal working group on private bank ownership.

The panel has recommended changes that could re-define India's banking eco-system.

It has proposed allowing large corporate houses as promoters, but only after necessary amendments to the Banking Regulations Act.

It has also made a pitch for doubling the minimum initial capital requirement for licensing new universal banks to Rs 1,000 crore.

The panel has also suggested that well run NBFCs can be considered for conversion into banks if they have operated for 10 years and meet due diligence criteria.

The panel has also recommended hiking the cap for promoter stake from 15 percent to 26 percent in the long-run.

To discuss the recommendations, Latha Venkatesh and Shereen Bhan spoke to Sachin Chaturvedi, member of RBI Internal Group; Bahram Vakil, founder & senior partner at AZB & Partners; Abizer Diwanji, partner at EY India; PN Vasudevan, MD & CEO of Equitas Bank; SC Garg, former finance secretary; DK Mittal, former financial services secretary; HR Khan, former deputy governor of RBI and Rajnish Kumar, former chairman of State Bank of India.

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(Edited by : Bivekananda Biswas)