Only a few months back our FM was telling that in India we should have only 4 or 5 strong banks so that we can compete with the World Banks. Hence ever merger of weaker banks with stronger banks was advocated. The Unions also went on strike on this aspect.Suddenly there is U turn and RBI is considering new licences. I can't understand the logic behind this? Is approaching election anything to do with this? Or they are pleasing the bank unions?
Re: New Bank Licences
by Parthasarathy R on Jul 07, 2013 09:55 PM
Merger of Banks will be an ideal step today.With practically no difference in services and minor variation in deposit and lending interest rates, it would be advisable for unions to concur with merger so that not only a few strong banks will emerge but also avoidable multiplicity of recurring costs can be avoided. Large number of banks has only enabled unscrupulous borrowers to have multiplicity of limits against same activity and security and ultimately cheat all the banks dealing with public money.
