Traditionally banking function in India is considered as taking
deposits and providing loans. This is substantially enhanced and
banks today provide various products and services such as selling
of insurance products, mutual funds, acting as financial
consultants etc. These activities are generally monitored by a bank
internally by implementing stringent policies to avoid conflict of
interest inter alia by maintaining Chinese walls, entering into
service level agreements and/or by adopting a methodology where
entities are set up to undertake visibly distinct types of business
/ activity.
This is also done to insulate the banking systems from risks
that can be attached to it from other sectors. Afterall, and
specifically post the global financial crisis, it is a constant
endeavor to repose faith of public at large in the banking and
financial system. Towards this objective, on 21st April 2016, the
Reserve Bank of India ("RBI") has issued the
'Guidelines on Investment
