I havent read the entire 100-pg report, but wud be very scared if conglomerates are given bank licences. The examples of Yes Bk, DHFL, PMC, LVB show crony lending is all pervading even when big business was NOT allowed in banking & no sharehldr cud hold more than 5% eq in a bank
https://twitter.com/CNBCTV18Live/status/1329729453073727490
2. We need a debate on whether payment banks shud be allowed to become small fin banks. When payment bank licences were given in 2015 to corp houses, RBI said these won’t be made SFBs or univ banks. The working Grp is now allowing big biz to enter banking via payment bank route.
3.The working group’s report recognises that connected lending should be disallowed. But can RBI monitor this? Yes Bank & LVB both showed signs that promoter/shareholders influenced lending decisions. This even when corporates aren’t allowed in banking. Imagine when they are!
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