The Reserve bank of India has broadly agreed with the union finance ministry's proposal to establish a financial holding company for state-run lenders, and ministry will soon advance with the plan, Financial Services Secretary DK Mittal has announced.

Mr. Mittal said that the central bank had already given its feedback on the proposal to the finance ministry, and the ministry was analyzing it.

However, Mr. Mittal added that there was a still a requirement to look at regulatory platform.

Speaking on the topic, he said, "RBI has broadly agreed on this that this is a good move forward. However, there is a need to look at regulatory platform because it would be such a large conglomerate and how to be regulated."

When asked about the government's cash subsidy transfer scheme, which is going to roll out from 1st of January, he claimed that banking system was fully prepared for the launch of the ambitious scheme.

He also announced that the government's decision of capital infusion of around Rs 15,000 crore in the public sector lenders to support their capital base would be announced sometime this week.

The list of lenders that will require capital support from the government includes State Bank of India, Indian Overseas Bank, Bank of Maharashtra and Central Bank of India.