FE@CAMPUS MASTERMIND: Response by Harsh Mehta to question for Jan 28-Feb 3
The winds of banking laws bills news that had come from the house of parliament will give a new direction to the Indian Banking Sector. In context of financial inclusion, where still today, the banking sector not able to penetrate and fail difficulties to provide services to the rural people, new banks will certainly play these role and hence they are welcome. The major concern that RBI faces today is whether industrial houses be able to give justice to the banking license or will use these license for their own purpose. Recent views from big think tanks like Dr. C. Rangarajan and institute like IMF had also given red signals to give banking license to industrial house. Thus a well drafted new banking license should be prepared by RBI, so that banking license should not be misused and be used for development of the banking sector as a whole.