RBI seeks ‘no objection’ from 12 agencies, regulators

New Delhi: The proposed merger of Indiabulls Housing Finance (IHFL) and Lakshmi Vilas Bank (LVB) may face hurdles in getting fit and proper status from the Reserve Bank of India (RBI) as many of the law enforcement agencies and regulators are yet to tick on “no objection”, citing “pending investigations” against the promoters of the housing finance firm.

Sources say that a fit and proper tag is the key parameter in getting approval to become a bank as a lot of public money is involved. And this status largely depends on the reviews and clearances the banking regulator .