Hasten slowly in opening up the banking sector

Abstract

The clamour to allow business houses to set up banks, convert NBFCs into banks, and to give foreign banks more access is being orchestrated by vested interests. The reform debate in India has developed a single-point focus on the entry of foreign entities into various sectors.

Whether it is retail trade or education or banking, the word reform means allowing the entry of foreign players. It is really unfortunate because there are a zillion other things one needs to do in the context of reforms.

There are intense discussions at the level of the Reserve Bank of India (RBI) and the ministry of finance about opening up the banking sector to new entrants, both domestic and foreign. The usual suspects — various lobbies called industry associations — are giving their views to justify the interest of private business, both Indian and foreign. Two critical issues in this discussion pertain to providing banking licenses to business houses and non-banking finance companies (NBFCs), and more branch licenses to foreign banks. Read more at: https://www.dnaindia.com/analysis/main-article-hasten-slowly-in-opening-up-the-banking-sector-1451310