The Reserve Bank on Friday proposed to review the guidelines on ownership, governance and corporate structure of private sector banks in the backdrop of key developments in the space in the recent years.

The five-member internal working group to review the guidelines will be headed by RBI central board director P.K. Mohanty, the RBI said in a release. The committee shall submit its report by September 30, 2020.

“The review would provide an opportunity to harmonise the norms applicable to banks set up at different time periods, irrespective of their date of commencement of business,” the RBI said.

The panel has been asked to review the extant licensing guidelines and regulations relating to ownership and control in Indian private sector banks and suggest appropriate norms, keeping in mind the issue of excessive concentration of ownership and control, as well as international practices and domestic requirements.

The review is significant in the wake of the out-of-court settlement between RBI and Kotak Bank this year.