There isn’t a global standard so RBI wanted to know what are the arguments for and against industrial houses been given a license. The logic is that they do not want to mingle the commercial business with banking activity. My personal view on this is that there hasn’t been any major argument in the report to say why this current stance has to be changed.
NS Vishwanathan, Former Deputy Governor of RBI
We have introduced the concept of mobile finance bank, we have payment bank, and there was some discussion on payment bank. I would say rather than thinking of only converting everything into SFB and if our idea is to have the financial inclusion and large penetration of credit, it would be a great idea to allow the payment bank to do something credit. So there would be another institution in addition to the universal bank and SFB and serve the purpose very well. So, I am not fully convinced that we need to unleash a dozen of new banks to bring the growth in this country. Read more…..
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Yahoo Finance’s Brian Cheung breaks down Treasury Secretary Mnuchin asking the Fed to return unused COVID-19 funds.
