4:22 AM
New licences: Opposition questions timing, 'RBI hurry'
OPPOSITION parties on Thursday raised concerns about the timing of the grant of new bank licences by the Reserve Dank of India even though the Election Com-mission gave its go-ahead for the big-bang announcement.
"We have been very dear all through that when the model code of conduct is in force- when General elections are a month away, then what is the hurry by the RBI to issue new bank licences? It would have made more sense to wait for the new government."said Ravi Shankar Prasad, senior BJP leader.
Speaking to I 'he Indian Ex- 1'iasad said it voted to power, the bharatiya Janata Party would revisit t he issue of new bank licences. "We will come with structured responses. While we arc very clear there should be more competition in the banking sector, Uiere also has to be safeguards lo protect the financial and banking system." he said. The RBI on Wednesday issued bank permits to two firms—IDFCLtdand Band- THE RBI on Wednesday issued bank permits tolwo firms - IDFC Ltdand Band han Financial SENIOR BJP leader Ravi Shankar Prasad says that it would have made more sense to waitforthe new government
han Financial alter taking approval from the poll panel. the prior clearance from the Election Commisson was required because the Model Code of Conduct is in place ahead of the General Elections that barst the govemment from announcing any new proposal.
But the move was also questioned by senior CPI leader Gurudas Dasgupta who said. "It is not the right time 10 issue bank licences with the electionsright around the corner. The t timing is such that we can not even take it up. The Election Commission has also cleared the proposal."
Both Dasgupta and Prasad are members of the Parliamentary Standing Commit tee on Finance, which in its report on new bank licence had cautioned the RBI against giving such permits to industrial houses, "Excluding industrial houses from bank licences THE MOVE was also qu estion ed byseniorCPIIeaderGurudasDas-gupta who said, "11 is not the right lime to issue bank licences with theeleclionsnght around the comer. Thetiming is such that we can not even take it up"
is the only positive aspect of the process. The Standing Committee to had opposed such a move." he said.
However. RBI governor Raghuram Rajan had earlier this week said that granting of new hank licences was not a political process. "This is not i n a ny way a pol ilica I proce 9L It is an economic and regulatory process and therefore seen as distant and different have to undertake what we have to undertake." he had said.
Finance minister P Chidamharam too had echoed similar views and said the process of granting bank licences should not he interrupted. Raj an, he said, had Ra-jan had referred the proposal to the EC out of "abundant caution". Earlier, former finance minister Yashwant Sin ha Iih) had opposed issue of bank licences by the RBI during the elect h'iiperu)d.
"We have been very dear all through that when the model code of conduct is in force- when General elections are a month away, then what is the hurry by the RBI to issue new bank licences? It would have made more sense to wait for the new government."said Ravi Shankar Prasad, senior BJP leader.
Speaking to I 'he Indian Ex- 1'iasad said it voted to power, the bharatiya Janata Party would revisit t he issue of new bank licences. "We will come with structured responses. While we arc very clear there should be more competition in the banking sector, Uiere also has to be safeguards lo protect the financial and banking system." he said. The RBI on Wednesday issued bank permits to two firms—IDFCLtdand Band- THE RBI on Wednesday issued bank permits tolwo firms - IDFC Ltdand Band han Financial SENIOR BJP leader Ravi Shankar Prasad says that it would have made more sense to waitforthe new government
han Financial alter taking approval from the poll panel. the prior clearance from the Election Commisson was required because the Model Code of Conduct is in place ahead of the General Elections that barst the govemment from announcing any new proposal.
But the move was also questioned by senior CPI leader Gurudas Dasgupta who said. "It is not the right time 10 issue bank licences with the electionsright around the corner. The t timing is such that we can not even take it up. The Election Commission has also cleared the proposal."
Both Dasgupta and Prasad are members of the Parliamentary Standing Commit tee on Finance, which in its report on new bank licence had cautioned the RBI against giving such permits to industrial houses, "Excluding industrial houses from bank licences THE MOVE was also qu estion ed byseniorCPIIeaderGurudasDas-gupta who said, "11 is not the right lime to issue bank licences with theeleclionsnght around the comer. Thetiming is such that we can not even take it up"
is the only positive aspect of the process. The Standing Committee to had opposed such a move." he said.
However. RBI governor Raghuram Rajan had earlier this week said that granting of new hank licences was not a political process. "This is not i n a ny way a pol ilica I proce 9L It is an economic and regulatory process and therefore seen as distant and different have to undertake what we have to undertake." he had said.
Finance minister P Chidamharam too had echoed similar views and said the process of granting bank licences should not he interrupted. Raj an, he said, had Ra-jan had referred the proposal to the EC out of "abundant caution". Earlier, former finance minister Yashwant Sin ha Iih) had opposed issue of bank licences by the RBI during the elect h'iiperu)d.
Posted in: News 2014
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