Opening up the banking sector to conglomerates will not do any good for the Indian economy (“Don’t lower your guard,” Feb. 25). We saw many private sector banks which sprouted perish in the face of stiff competition. The trauma of their customers and employees till they were rescued by public sector banks cannot be explained in words. The government’s latest move is suicidal.
C. Petson Peter,
The government’s undue haste in pushing through licences for new banks, in spite of resistance from the RBI and the IMF, makes the common man curious. With the general elections round the corner, speculative sectors which finance the elections are at an advantage. Of all the sectors, the financial sector is the fulcrum of the economy. It is not only money but also trust that matters. The government’s stand of welcoming big global banks, on the one hand, and making financial inclusion a priority, on the other, is indeed strange. Our banking system is robust enough to take care of the needs of our economy.