Special Correspondent

NEW DELHI: The Communist Party of India (CPI) on Thursday said the Government had quietly begun downsizing the banking business. This charge was made against the Government on the basis of a circular issued by the Reserve Bank of India (RBI) to all banks asking them to offload a large part of retail banking services to outsiders, including corporate entities.

Disclosing this at a press conference, CPI leader Gurudas Dasgupta said he had wanted to raise the matter in the Lok Sabha on Thursday but was unable to do so because of disruption of proceedings. Circulating copies of the circular, he said that the work that the RBI wanted to be offloaded included identification of borrowers, preliminary processing and submission of loan applications to banks, post-sanction monitoring for recovery.