Rahul attacks bank licences to corporates

KT NEWS SERVICE. Dated: 11/25/2020 12:34:28 PM

NEW DELHI, Nov 24: Former Congress President Rahul Gandhi on Tuesday slammed the government over the decision to grant bank licences to the corporates, coming on the heels off former RBI governor Raghuram Rajan and ex-deputy governor Viral Acharya called it as "bombshell" and "disastrous."
In a tweet, Rahul explains how the Modi government is helping out the big companies step by step.
"Chronology samajhiye: First, karz maafi for few big companies. Next, huge tax cuts for companies.
Now, give people's savings directly to banks set up by these same companies," Rahul tweeted.
His remark came after a joint article by Dr Rajan and Acharya that "allowing corporate houses into the banking system could intensify concentration of political and economic power in the hands of a few business houses.
"Industrial houses need financing and they can get it easily, with no questions asked, if they have an in-house bank. The history of such connected lending is invariably disastrous -- how can the bank make good loans when it is owned by the borrower," the duo asked.
They alleged that the RBI's internal working group (IWG) ignored the advice of the financial experts it consulted as all except one "were of the opinion that large corporate/industrial houses should not be allowed to promote a bank."

 

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