Modi government to allow Ambani and Adani to start banks.

On one side, the Modi government is privatising the Public Sector banks. On the other side, it is going to allow Ambani and Adani to start banks. 

The Reserve Bank of India (read Modi government) has decided to permit industrial houses like Mukesh Ambani, Gutam Adani, Tatas, etc. to start banks. This is nothing, but allowing the big corporates to loot people’s money, deposited in the banks. Former Reserve Bank Governor, Raghuram Rajan, and Deputy Governor, Viral Acharya have vehemently opposed the government's move. Their views are reported in the Business Standard dated 23.11.2020 as follows:-

“Giving licenses to industrial houses will concentrate economic powers to these corporates. When the industrial houses would need financing, they would get that without any question from the banks floated by them. Banks in India are rarely allowed to fail, which helps them garner huge deposits. If they are owned by industrial houses, it can lead to bad lending, the duo reasoned.”