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Shaktikanta Das says it’s an internal panel suggestion rather than an RBI view

Reserve Bank of India (RBI) President Shaktikanta Das (Image: PTI)

RBI’s Internal Working Group (IWG) proposal to allow a company to do banking could endanger depositor’s money, as it could lend to entities within the group. Please note that we have received sharp criticism from experts who fear that there is.

  • PTI Mumbai
  • Last updated: December 4, 2020, 17:36 IST
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Shaktikanta Das said on Friday that allowing companies to promote banks is not the RBI’s view, and the central bank has recently made decisions and other proposals by internal panels only after perusing public comments. Said that he would do. The RBI’s Internal Working Group (IWG) proposal to allow companies to bank is sharply criticized by experts, including the former RBI Governor, Vice-President, and Chief Economic Advisor, and in doing so the depositors I am afraid that my money can be at risk. Lending can occur to entities within a group.

The IWG also proposes to allow NBFCs with assets over Rs 50,000 to consider converting to banks and to reduce the time it takes for clearing banks to convert to smaller financial banks. These proposals also have some criticisms. “This is a report by the RBI’s IWG. It should not be considered an RBI’s view or decision. It must be understood very clearly,” Das said without giving details. He said the IWG, a five-member IWG, including two members of the RBI’s Central Board and three staff from the RBI, acted “independently” after deliberations and expressed a particular view. ..

“The RBI has not made any decisions on these issues so far,” Das said, adding that the central bank would peruse stakeholder and public comment before reaching the “decisions considered.” It was. It can be noted that according to the report, only one member of the panel supported allowing large corporations or industrial parks to promote banks.

Proponents of this move will allow capital to become available by allowing financially-powered companies, especially when financial constraints limit the state’s ability to raise funds to drive economic growth. It states that. In criticism, former RBI Governor Raghuram Rajan and former Vice-President Bilal Achara said that “a very debt-ridden, politically-connected business house” has the greatest motivation and ability to promote a new banking license. Said to have. To “authoritative chronism”.

Shaktikanta Das says it’s an internal panel suggestion rather than an RBI view

Source link Shaktikanta Das says it’s an internal panel suggestion rather than an RBI view

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