The Congress on Tuesday strongly opposed a proposed transfer of Reserve Bank of India (RBI) to permit company homes to enter the banking sector and arrange banks. Its senior chief and former Union Finance Minister P. Chidamabaram mentioned it could “reverse” the features made up to now 50 years.
At a digital press convention, Mr. Chidamabaram and social gathering basic secretary Randeep Surjewala accused the Union authorities of “pushing” its agenda by means of RBI, and appealed to different political events and commerce unions to affix the Congress in opposing the transfer.
The social gathering requested the federal government to “unequivocally” declare that it had no intention to pursue the proposal.
Mr. Chidambaram mentioned everybody knew which “politically connected corporate houses will get the first licence” if the proposal goes by means of.
“The proposal, ostensibly based on a report of an RBI Internal Working Group [IWG] has the fingerprints of the Modi government written all over it. This proposal, along with some other recommendations, is part of a deeper game plan to control the banking industry. The proposal, if implemented, will completely reverse the enormous gains made in the last 50 years of retrieving the banking sector from the clutches of business houses”, Mr. Chidamabaram mentioned in his opening assertion.
“It is not the RBI’s idea. The RBI is used or misused to push the government agenda… The opaqueness leads us to believe it is entirely Mr Modi ji idea”, he said.
The whole deposits within the banking trade was to the tune of ₹140 lakh crore. If enterprise homes have been allowed to personal banks, with a small fairness funding, they’d management very giant quantities of the nation’s monetary sources. “This must not happen and the Congress will strive its utmost to ensure that this will not happen”, he mentioned.
All over the world three rules guided financial institution licensing: broad-based shareholding to replicate a shareholder democracy; strict separation of possession and administration; and prohibition of related lending or making a wall between the lender and the borrower. “All the three principles will be thrown out of the window if corporates and business houses are allowed to set up banks”, he famous.
Mr. Chidamabaram identified that former RBI Governor Raghuram Rajan and former Deputy RBI Governor Viral Acharya had opposed the proposal. “It is shocking that such an idea should have been presented to people as though it has the imprimatur of experts and the endorsement of the RBI”, he noticed.
Former Congress chief Rahul Gandhi mentioned in a tweet, “Chronology samajhiye [understand]: First, karz maafi [loan waiver] for few big companies. Next, huge tax cuts for companies. Now, give people’s savings directly to banks set up by these same companies”.