Senior Congress leader P Chidambaram on Tuesday criticised the Reserve Bank of India’s proposal to allow corporate entities into the bankin...
Senior Congress leader P Chidambaram on Tuesday criticised the Reserve Bank of India’s proposal to allow corporate entities into the banking sector, calling it a part of a “deeper game plan” to control the banking industry. Chidambaram also alleged that the Centre was misusing a respected institution like RBI to promote its dangerous agenda.
The former finance minister claimed at an online briefing that the proposal was not RBI’s idea. “The RBI is being misused by the government to propose this idea,” he was quoted as saying by PTI. “The RBI did not propose demonetisation and the government used it to say so, the government is misusing the most venerable institution to push its agenda.”
Chidambaram expressed concern that the proposal will undo the efforts made in the last 50 years to free the banking sector from the control of business houses.
Also read: Raghuram Rajan criticises RBI’s plan to allow corporates in banking sector
Chidambaram also spoke about how the proposal will allow business to control a huge portion of the country’s finances. “The total deposits in the banking industry is of the order of Rs 140 lakh crore,” he said at the briefing. “If business houses are allowed to own banks, they will, with a small equity...
