NEW DELHI: Members of Parliament's standing committee on finance have questioned the Reserve Bank of India's move to allow industrial houses and non-banking finance entities to set up banks, wanting to know the rationale behind the decision and when precisely the policy was framed. RBI governor D Subbarao was quizzed by finance standing committee members on Monday over his assertion that the new policy flowed from finance minister Pranab Mukherjee's 2010-11 budget speech, who had promised greater access to banking in terms of both geographical spread and services. The MPs contested the argument that Mukherjee's speech - that had dwelt on increasing banking access with India having successfully negotiated the 2008-09 global slowdown - provides the framework for the RBI proposing to allow industrial and business houses to set up banks. They said Mukherjee's remarks did not indicate the proposed policy.
TOI
