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Left slams RBI proposal to give banking licences to corporates

CPI general secretary D. Raja. File   | Photo Credit: B. Jothi Ramalingam

The Left parties slammed the RBI proposal to give banking licences to large corporates calling it a retrograde step.

Also read: Congress opposes move to allow corporate houses set up banks

The RBI had strongly objected to this in the past. Former RBI Governor Raghuram Rajan and Deputy Governor Viral Acharya have also criticised the move.

CPI general secretary D. Raja said this is a retrograde move and should not be allowed. He said this is a continuation of the Modi government’s “pro-corporate neo-liberal” economic policies. “It should be recalled here that at the time of Independence, all the banks in India were owned by business houses but none of them came forward to help the government in its planned economic development projects,” Mr. Raja said.

He said the CPI was a votary to nationalisation of banks. “Nationalised banks have today become the main engine of economic development.” Mr. Raja also pointed that private banks have been running into trouble, the latest example is the Lakshmi Vilas Bank.

Also read: Rajan, Acharya caution against proposal to allow corporate houses to set up banks

“It is unfortunate that instead of learning lessons, the RBI is proposing to hand over banking licence to corporate and business houses,” he said.

The RBI’s proposal to give banking licences to corporates will jeopardise common people’s interest and run counter to India’s economic development. “Giving licence to corporate and business houses is the most retrograde step and should not be allowed,” he said.

CPI(M) general secretary Sitaram Yechury also had a similar grim prognosis. He posted news reports on how the RBI had ignored the advice of experts. “Ignoring the advice of experts has become routine for this government. Modi’s cronies looted banks taking huge loans. Lakhs of crores of rupees have already been written off. Corporate takeover permits loot of people’s savings demolishing the banking system,” Mr. Yechury tweeted.

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Printable version | Jan 21, 2021 5:35:38 PM | https://www.thehindu.com/news/national/left-slams-rbi-proposal-to-give-banking-licences-to-corporates/article33170780.ece

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