RBI issued draft guidelines on new bank licences to business houses recently saying it was a move to increase competition in the sector and for inclusive growth. There is enough competition already, and no more competition is rightly envisaged in policy. The state of PSBs needs to be relooked. They should be provided sufficient capital and should address the HR problems on an urgent basis. The number of branches are to be increased and unbanked areas are to be narrowed down. As far as the inclusive growth factor is concerned, the manner in which PSBs are involved in rural areas, that is not the case with other private players and hence the factor needs more effective redressal than in its current form. The Indian banking industry, with its more conservative approach, has stood tough in sailing through many odds in recent times. We need to maintain it rather dissolve the same.
Sreeram Puppala, Chandigarh (FE)
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