I am not sure whether this Government owned private sector bank would not lead to regulatory capture. There may be examples of the past countering such thinking. But the future cannot be judged by the past particularly in the context of encroachment into the autonomy of the central bank lately in the context of Financial super regulatory authority in the hands of the Ministry of Finance. Coming to India Post Bank, is there a likelihood of these behaving differently from PACS under the fold of DCCBs? Why should not the Government think of strengthening the PACS through technology and take on to systemic linkage with the secured Payments and Settlements system? Investments are huge but they are worthwhile at the moment and they can be brought into the supervisory and regulatory regime of the RBI back from the fold of NABARD to ensure financial stability.
- Yerram Raju
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