Reserve Bank of India has suggested that corporates and NBFCs aspiring for fresh banking licenses should acquire regional rural banks (RRBs). But it may not be so easy a step for corporates as it seems.

Many bank heads have said that the ownership structure of these RRBs may come as a hindrance in the path of their acquisition. Currently, the Central government holds 50% of the shares of these banks, 35% lies with sponsor banks and remaining 15% is held by the respective state governments.

According to RBI, the new entrants in the banking domain must first acquire an RRB before setting up their own bank. This step would mean some changes that need to be brought in the RRB Act which again implies a time taking affair.

"We run extremely profitable RRBs. Industrial houses are more keen on having a banking licence. In fact, we are keen to allow our RRBs to compete more with commercial banks. But if this has to happen, we need amendments to the RRB Act, 1976 thus perhaps allowing RRBs to even access capital markets," a senior official with a south-based PSU bank said.

"This (allowing business houses to take over RRBs) is still at the ideation/discussion stage, even if there are buyers who are likely to sell. We have steered RRBs to this position and they have turned profitable. Yes there is scope for further improvement and we are working on it," said an official with Canara Bank.

"It may not be a practical idea to implement since there are issues like human resources. RRBs are also not allowed to go in for large lending and this maybe a dampener for new investors," said the Chairman of a south based RRB saying that the step is impractical.