If Corporates are excluded from grant of licenses, RBI's credibility and wisdom get a boost in the financial market and among the depositors. Corporates are known for their misdeeds and if they get bank licenses they will have access to easy unlimited source of funds through deposits which will be finally diverted for building up their empire further at the cost of investment for developing the economy.The position of Prenationalisation era will be repeated and RBI will have to bear the brunt of disciplining them without any effect. Hope the news that Corporates would not get licenses will come true.
Dr.T.V.Gopalakrishnan
Comment in Business Standard
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