Congress opposes proposal to allow corporates into banking

Strongly condemning the proposal of central government allowing business houses and corporates to set up banks, the Congress party called upon the trade unions as well as all political parties to oppose the move.

New Delhi: Congress party, on Tuesday, strongly condemned the proposal of allowing business houses and corporates to set up banks and called upon the trade unions as well as all political parties to oppose the move.

While addressing a press conference, former Finance Minister and senior Congress leader P Chidambaram supported the statement of former RBI Governor Raghuram Rajan and ex-deputy Governor Viral Acharya for stoutly opposing the proposal of allowing Corporate and business houses to enter into the banking sector and established banks.

He alleged, "The proposal, ostensibly based on a report of an RBI Internal Working Group (IWC) has the fingerprints of Modi government written all over it. The proposal, along with some other recommendations, is a part of a deeper game plan to control the banking industry."

Chidambaram even cautioned that the proposal, if implemented, will completely reverse the enormous gains made in the last 50 years of "retrieving banking sector from the clutches of business houses".

The IWC, which released its report last week, admitted that "all experts except one were of the opinion that large corporate/industrial houses should not be allowed to promote a bank".

"It is shocking that such an idea should have been presented to the people as though it has the imprimatur of experts and the endorsement of RBI. Just as RBI was the cat's paw of government in the Saga of demonetisation, RBI is being used by the government to push through its dangerous agenda," Chidambaram alleged.

He further added, "This is another example of Modi government pandering to the aggrandizement and acquisitive ambitions of the business houses of India. If the proposal goes through, it is no secret which politically connected business houses will get the first licences and increase the monopolistic power."

Congress General Secretary and Chief Spokesperson Randeep Singh Surjewala, who was also present in the press briefing, said that Congress will talk to various other political parties to oppose the move in the public interest.

"We call upon the people of India in all political parties and trade unions to join us in resolutely opposing the retrograde idea of allowing corporate and business houses to enter the banking sector and set up banks," said the Congress leader.

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