"Prof Yunus quoting examples of Raiffiesen Bank Internationl AG, Societie Agricole SA and others has highlighted the harms of providing general banking licence to MFIs which would make them move away from serving the underserved and unserved. He has rather recommended for special banking licence to MFIs. I have also been voicing similar concerns in my responses to the action of the RBI providing banking licence to Bandhan, the MFI. If Bandhan is going to function as a full fledged commercial bank, then MF portfolio would be just one of the asset side items of the Bandhan Bank. It would just comply with the PSL requirements of RBI. In about a decade, it would also go the Raiffeisein Bank and others. Sure, this may not be the objective of the RBI in having granted banking licence to Bandhan. Hope in the light of the observations of Prof Yunus, at least now, the RBI may rethink on its decision in granting the general banking licence to Bandhan and convert it as a special licence making it to function on the lines of banks like Bancosol, Bolivia, Grameen Bank, Bangladesh etc."
- S.Santhanam
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