Why RBI should go easy on bank licences

......The government is trying to push the RBI in giving out new banking licences with daily media reports on what kind of corporates can be given these licences. The fact that the government is getting involved in new bank licences at a time when its own banks are showing the worst performance in the banking sector leads to serious questions on the intentions of the government. The RBI will only give out a few licences based on merits but given the government involvement there will be raised eyebrows on why certain corporates received licences and certain corporates did not receive licenses. The RBI should hold back on bank licences until the banking sector gets back on track with balance sheets improving. The government should leave the RBI on the banking licence issue.......

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