The RBI’s latest draft guidelines stems from its discomfort in overlapping activities between banks and their subsidiaries. It says banks and not their units should do the core banking activity of lending and deposit taking. This will affect banks' structures, balance sheets and upcoming IPO valuations.  

In this episode of The Morning Brief, host Anirban Chowdhury breaks down the implications with ET’s Banking Editor Sangita Mehta and Sachin Gupta, Chief Ratings Officer at CARE Ratings Ltd.