DON'T ALLOW CORPORATES TO START BANKS.
The Government of India is prodding RBI to issue licenses to corporates to start
banks in the country.This is not a good move.The corporates should engage
themselves in the sphere which they are good at. If they promote banks,there will
definitely be conflict of interest however much they undertake to keep distance. It
appears Reserve Bank of India is not too keen to this move and it is clearly visible
that the central government is pushing the RBI to issue licenses.
The International Monetary Fund (IMF) has cautioned that India risks supervisory
oversights by issuing banking licenses to corporate entities.Mr.Yeshwant Sinha,
Former Finance Minister and Chairman,Parliamentary Standing Committee
on Finance has called the move as "a very bad idea".