Any failure to recoup the money adds to stress in the banking sector, which is already dealing with an increased level of bad loans and reduced profits because of the impact of the pandemic.

The financial services firm will be allowed to set up a small finance bank with the PMC takeover.

Four apps were taken down from the Play Store – where the vast majority of Indians download phone apps – after Reuters flagged to Google that they were violating its ban on offering personal loans requiring full repayment in 60 days or less.

It also recommended increasing the size of the stake that promoters in private banks can hold to 26% from the current 15% over a 15-year time frame.

The proposal aims to waive the compounded interest component on small business loans and some personal debts from March to August.

The deals underscore growing investor interest in Reliance Retail, which is led by Asia's richest man Mukesh Ambani.

State-owned banks have barred employees from posting pictures, video clips or messages on social media on issues such as overcrowding at bank branches during the coronavirus crisis.