CORPORATES IN BANKING: CONTROVERSIAL SUGGESTION BY RBI PANEL
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CORPORATES IN BANKING: CONTROVERSIAL SUGGESTION BY RBI PANEL
RBI’s Internal Working Group (IWG)’s to allow Indian corporate houses into banking, instead of being hailed as a ‘big bang’ reform, has invited scathing criticism from former RBI Governors, banking experts and others. The study examines arguments against the recommendation that include possible undermining economic growth and democracy; that checks and balances on good governance and supervision to prevent misuse may not work; dangers to overall financial stability; and defence of the suggestion that could become a watershed in banking sector reforms.
Situation assessment
for the week ended 30 November (1,984 words)
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Date of SS: 30, November
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