The Reserve Bank of India (RBI) should become the regulator for all loans, including home loans, State Bank of India (SBI) Chairman Pratip Chaudhuri said.

Speaking at the fifth ICC Banking Summit, Mr. Chaudhuri said that there was no justification for having different regulators for different verticals like industrial loans, vehicle loans and home loans.

Speaking on the topic, he added, “Perhaps, the objective of the regulations is better served with RBI itself becoming the sole regulator for all loans, including home loans.”

He pointed out that no other country in the world has different regulators for different verticals of loans.

In India, the Reserve Bank of India is responsible for regulating the home loans granted by commercial banks, while housing finance firms are regulated by National Housing Banks (NHBs).

Mr. Chaudhuri also suggested that the minimum tenor for bank deposits should be slashed from the current seven days to three days to make it more flexible for savers. In addition, he reiterated the banks’ demand for interest on the money they keep with the central bank under the cash reserve ratio (CRR).